Use this Revenue Procedure to prepare Tax Year 2012 and prior year information returns for submission to Internal Revenue
Service (IRS) using electronic filing.

Caution to filers:

Please read
this publication carefully. Persons or businesses required to file
information returns electronically may be subject to penalties for
failure to file or include correct information if the instructions
in this Revenue Procedure are not followed.

Important notes:

The IRS
internet connection for filing information returns electronically
is http://fire.irs.gov and http://fire.test.irs.gov. The Filing Information Returns Electronically (FIRE) system and the test system will be down from 6 p.m. ET December 14, 2012, through January 02, 2013 for yearly
updates. In addition, the FIRE system may be down every Wednesday
from 2:00 a.m. to 5:00 a.m. ET for programming updates. The FIRE system
will not be available for submissions during these times.

Form 4419, Application for Filing Information Returns Electronically (FIRE), is subject to review before the approval to transmit electronically
is granted. IRS may require additional documentation. If a determination
is made concerning the validity of the documents transmitted electronically,
IRS has the authority to revoke the Transmitter Control Code (TCC)
and terminate the release of the files.

The FIRE system does not provide fill-in forms for filing information
returns.

Part A. General

Revenue Procedures are generally revised annually to reflect
legislative and form changes. Comments concerning this Revenue Procedure,
or suggestions for making it more helpful, can be addressed to:

Internal Revenue Service

Attn: Information Returns
Branch

230 Murall Drive, Mail
Stop 4360

Kearneysville, WV 25430

Sec. 1. Purpose

Note

Note: Refer to
Part A, Sec. 13, for definitions of terms and codes used in this publication.

.02 The purpose of this Revenue
Procedure is to provide the specifications for filing Form 1042-S
with IRS electronically through the IRS Filing Information Returns
Electronically (FIRE) system. The system is designed to support the
electronic filing of information returns only. This Revenue Procedure
must be used to prepare current and prior year information returns filed beginning January 1, 2013, and received by IRS by December
31, 2013.

.03 All data received for processing
will be given the same protection as individual income tax returns
(Form 1040). IRS will process the data and determine if the records
are formatted and coded according to this Revenue Procedure.

.04 Generally, the box names
on the paper Form 1042-S correspond with the fields used to file electronically;
however, if discrepancies occur, the instructions in this Revenue
Procedure must be followed when filing electronically.

.05 The following Revenue Procedures
and publications provide more detailed filing procedures for certain
information returns:

Instructions for Form 1042-S, Foreign Person’s
U.S. Source Income Subject to Withholding

.06 IRS does not process Forms
W-2. Paper or electronic filing of Forms W-2 must be sent to SSA.
IRS does, however, process Form 8508, Request for Waiver
From Filing Information Returns Electronically (Forms W-2,
W-2G, 1042-S, 1097-BTC, 1098 Series, 1099 Series, 3921, 3922, 5498
Series, and 8027) and Form 8809, Application for Extension
of Time to File Information Returns for Forms W-2 as well
as requests for an extension of time to provide the employee copies
of Forms W-2.

.07 Specifications for filing
Forms W-2, Wage and Tax Statements, electronically
are available from the Social Security Administration (SSA) only.
Filers can call 1-800-SSA-6270 to obtain the telephone number of the
SSA Employer Service Liaison Officer for their area.

.08 Every withholding agent
(defined in Part A, Sec. 13) must file an information return on Form
1042-S to report amounts of U.S. sourced income that was paid during
the preceding calendar year. See Publication 515, Withholding
of Tax on Nonresident Aliens and Foreign Entities, for
additional guidance on what is considered U.S. sourced income. Form
1042-S must be filed even if there was no tax withheld because the
income was exempt from tax under a U.S. tax treaty or the Code. This
includes the exemption for income that is effectively connected with
the conduct of a trade or business in the United States, or the tax
withheld was released to the recipient. Amounts paid to bona fide
residents of U.S. possessions and territories are not subject to reporting
on Form 1042-S if the beneficial owner of the income is a U.S. citizen,
national, or resident alien.

Note

Caution: If filing Form 1042-S,
Form 1042, Annual Withholding Tax Return for U.S. Source
Income of Foreign Persons, must also be filed. See Form
1042 for more information.

Sec. 2. What’s New for Tax Year
2012

.01 “Nature of Changes-Current
Year” has been changed to “What’s New for Tax Year
2012”.

.02 The tax year must be updated
with the four-digit reporting year (2011 to 2012), unless reporting
prior year data.

.03 Form 4419, Application
for Filing Information Returns Electronically (FIRE), must
be submitted at least 45 days before the due date of the return(s)
to allow IRS the minimum amount of time necessary to process and respond
to applications.

.04 Income code 20 “Earnings
as an Artist or Athlete” has been deleted.

.05 There are two new income
codes. Use income code 42 for earnings as an
artist or athlete if there is no central withholding agreement. Use
income code 43 for earnings as an artist or athlete
if there is a central withholding agreement.

Reminders

In this publication, all titles of forms and publications and
pertinent changes for Tax Year 2012 are emphasized
by the use of italics. Portions of text that
require special attention are in boldface text.

Filers are encouraged to read the publication in its entirety.

Sec. 3. Where To File and How to Contact
the IRS, Information Returns Branch (IRB)

.01 All information returns
filed through the FIRE system are processed at IRS. General inquiries
concerning the electronic filing of Forms 1042-S may be sent to the
following address:

Internal Revenue Service

Information Returns Branch

Attn: 1042-S Reporting

230 Murall Drive, Mail
Stop 4360

Kearneysville, WV 25430

.02 All requests for an extension
of time to file information returns with IRS filed on Form 8809 or
requests for an extension to provide recipient copies, and requests
for undue hardship waivers filed on Form 8508 should be sent to the
following address:

Internal Revenue Service

Information Returns Branch

Attn: Extension of Time Coordinator

240 Murall Drive, Mail Stop 4360

Kearneysville, WV 25430

.03 The telephone numbers
and web addresses for questions about specifications for electronic
submissions are:

.04 The current Instructions for Form 1042-S have been included in Publication
1187 for the convenience of filers. The Form 1042-T is used only to
transmit Copy A of paper Forms 1042-S. When filing paper returns,
follow the mailing instructions on Form 1042-T and submit the paper
returns to:

Internal Revenue Service

Ogden Service Center

P.O. Box 409101

Ogden, UT 84409

.05 Form 4419, Application
for Filing Information Returns Electronically (FIRE), Form
8809, Application for Extension of Time to File Information
Returns, and Form 8508, Request for Waiver From
Filing Information Returns Electronically, may be faxed
to IRS at 1-877-477-0572 or 1-304-579-4105.

.06 Electronic Products and
Services Support, Information Returns Branch (IRB), answers electronic,
paper filing, and tax law questions from the payer community relating
to the correct preparation and filing of information returns (Forms
1096, 1097, 1098, 1099, 3921, 3922, 8935, 5498, 8027, and W-2G). IRB
also answers questions relating to the electronic filing of Forms
1042-S and 8955-SSA. Call 1-866-455-7438 or 1-304-263-8700 for specific
information about electronic filing of Forms 1042-S, 8027, and 8955-SSA.
Inquiries pertaining to backup withholding and reasonable cause requirements
due to missing and incorrect taxpayer identification numbers are also
addressed by IRB. Assistance is available year-round to payers, transmitters,
and employers, Monday through Friday, 8:30 a.m. to 4:30 p.m. Eastern
Time, by calling 1-866-455-7438 or by email at mccirp@irs.gov. When sending emails concerning specific file information, include
the company name and the electronic filename or Transmitter Control
Code. Please do not submit TINs or attachments, because electronic
mail is not secure and the information may be compromised. The Telecommunications
Device for the Deaf (TDD) toll number is 1-304-579-4827. Call as soon
as questions arise to avoid the busy filing seasons at the end of
January, February, and March. Recipients of information returns (payees)
should continue to contact 1-800-829-1040 with any questions on how
to report the information returns data on their tax returns.

Note

Note: IRB assistors do not
answer tax law questions concerning the requirements for withholding
of tax on payments of U.S. source income to foreign persons under
Chapter 3 of the Internal Revenue Code (IRC). If such assistance is
needed, call 1-267-941-1000 (not a toll-free number) or write to:

Internal Revenue Service

International Accounts

Philadelphia, PA 19255-0725.

.08 Filers should not contact
IRB if they have received a penalty notice and need additional information
or are requesting an abatement of the penalty. A penalty notice contains
an IRS representative’s name and/or telephone number for contact
purposes; or, the filer may be instructed to respond in writing to
the address provided. IRB does not issue penalty notices and does
not have the authority to abate penalties. For penalty information,
refer to the Penalty section of the Instructions for Form
1042-S.

.09 Make requests for paper
Forms 1042-S by calling the IRS at 1-800-TAX-FORM (1-800-829-3676)
or ordering online from the IRS website at www.IRS.gov/formspubs.

.10 Questions pertaining to
electronic filing of Forms W-2 must be directed to the Social Security
Administration (SSA). Filers can call 1-800-772-6270 to obtain the
telephone number of the SSA Employer Service Liaison Officer for their
area.

.11 A taxpayer or authorized
representative may request a copy of a tax return, including Form
W-2 filed with a return, by submitting Form 4506, Request
for Copy of Tax Return, to IRS. This form may be obtained
by calling 1-800-TAX-FORM (1-800-829-3676). For any questions regarding
this form, call 1-267-941-1000. This is not a toll-free number.

Sec. 4. Filing and Retention Requirements

.01 The regulations under
section 6011(e)(2)(A) of the Internal Revenue Code provide that any
person, including a corporation, partnership, individual, estate,
and trust, who is required to file 250 or more information returns
must file such returns electronically. Withholding agents who meet
the threshold of 250 or more Forms1042-S are required to submit the
information electronically.

Note

Note: Even though filers may
submit up to 249 information returns on paper, IRS encourages filers
to transmit those information returns electronically. Filers are encouraged
to file information returns electronically even if they do not meet
the required 250 information returns threshold.

.02 All filing requirements
apply individually to each reporting entity as defined by its separate
Taxpayer Identification Number (TIN), [Social Security Number (SSN),
Employer Identification Number (EIN), Individual Taxpayer Identification
Number (ITIN), or Qualified Intermediary Employer Identification Number
(QI-EIN), Withholding Foreign Partnership Employer Identification
Number (WP-EIN), Withholding Foreign Trust Employer Identification
Number (WT-EIN) ]. For example, if a corporation with several branches
or locations uses the same EIN, the corporation must aggregate the
total volume of returns to be filed for that EIN and apply the filing
requirements to each type of return accordingly.

.03 These requirements apply
separately to both originals and amended records filed electronically.

.04 The requirements do not
apply if the filer establishes undue hardship (See Part D, Sec. 5).

.05 Current and prior year
data must be submitted in separate electronic transmissions. Each
tax year must be a separate electronic file.

.06 Filers who have prepared
their information returns in advance of the due date should submit
this information to IRS no earlier than January 1 of the year the
return is due.

.07 Do not report duplicate
information. If a filer submits returns electronically, identical
paper documents must not be filed. Duplicate filing may result in
penalty notices being sent to recipients.

.08 Withholding agents should
retain a copy of the information returns filed with the IRS or have
the ability to reconstruct the data for at least three years from
the due date of the returns.

Sec. 5. Vendor List - Publication 1582

.01 IRS maintains a list of
vendors who support electronic filing. Publication 1582, Information Returns Vendor List, contains the names of
service bureaus that will produce or submit files for electronic filing.
It also contains the names of vendors who provide software packages
for payers who wish to produce electronic files on their own computer
systems. This list is compiled as a courtesy and in no way implies
IRS approval or endorsement.

.02 If filers engage a service
bureau to prepare files on their behalf, the filers must not also
report this data, as it will create a duplicate filing situation which
may cause penalty notices to be generated.

.03 Publication 1582 is updated
periodically. The most recent revision is available on the IRS website
at www.IRS.gov. For an additional list of software
providers, log on to www.IRS.gov and type “Business
e-file Providers” in the Search box.

.04 If you are a new vendor
and would like to be listed in the online Publication 1582 or if you
are listed and the information is incorrect or incomplete, submit
a letter to the following address:

Internal Revenue Service

Information Returns Branch

230 Murall Drive, Mail Stop 4360

Kearneysville, WV 25430-5201

The request should include:

Company name

Address (include city, state, and ZIP code)

Telephone and FAX number (include area code)

Email address

Contact person

Website

Type(s) of service provided (for example, service bureau and/or
software)

.01 Transmitters are required
to submit Form 4419, Application for Filing Information
Returns Electronically (FIRE), to request authorization
to file information returns with IRS. A single Form 4419 should be
filed. IRS encourages transmitters who file for multiple withholding
agents or qualified intermediaries to submit one application and to
use the assigned Transmitter Control Code (TCC) for all. Form 4419
is subject to review before approval to transmit electronically is
granted. IRS may require additional documentation. If a determination
is made concerning the validity of the documents transmitted electronically,
IRS has the authority to revoke the Transmitter Control Code (TCC)
and terminate the release of files.

Note

Note: An additional Form 4419
is required for filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935,
and W-2G. Form 8027, Employer’s Annual Information
Return of Tip Income and Allocated Tips, and Form 8955-SSA, Annual Registration Statement Identifying Separated Participants
With Deferred Vested Benefits, also require separate Forms
4419. See the back of Form 4419 for detailed instructions.

.02 Electronically filed returns
may not be submitted to IRS until the application has been approved.
Please read the instructions on the back of Form 4419 carefully. Form
4419 is included in Publication 1187 for the filer’s use. This
form may be photocopied. Additional forms may be obtained by calling
1-800-TAX-FORM (1-800-829-3676). The form is also available at www.IRS.gov.

.03 Upon approval, a five-character
alphanumeric Transmitter Control Code (TCC) beginning with the digits
“22” will be assigned
and included in an approval letter. The TCC must be coded in the Transmitter
“T” Record. If a transmitter uses more than one TCC to
file, each TCC must be reported on a separate electronic transmission.
Please make sure that electronic files are submitted using the correct
TCC.

.04 If any of the information
(Name, TIN or Address) on Form 4419 changes, please notify IRS in
writing by fax or mail so the IRS database can be updated. The transmitter
should include the TCC in all correspondence.

.05 Form 4419 may be submitted
anytime during the year; however, it must be submitted to IRS at least 45 days before the due date of the return(s) for current
year processing. This will allow IRS the minimum amount of time necessary
to process and respond to applications. Form 4419 may be faxed to
IRS at 877-477-0572 or 304-579-4105 (not toll-free). In the event
that computer equipment or software is not compatible with IRS, a
waiver may be requested to file returns on paper documents.

.06 IRS encourages a transmitter
who files for multiple withholding agents to submit one application
and to use the assigned TCC for all withholding agents.

.07 If a withholding agent’s
files are prepared by a service bureau, it may not be necessary for
the withholding agent to submit an application to obtain a TCC. Some
service bureaus will produce files, code their own TCC on the file,
and send it to IRS for the withholding agent. Other service bureaus
will prepare electronic files for the withholding agent to submit
directly to IRS. These service bureaus may require the withholding
agent to obtain a TCC to be coded in the Transmitter “T”
Record. Withholding agents should contact their service bureaus for
further information.

.08 Once a transmitter is approved
to file electronically, it is not necessary to reapply each year unless:

The withholding agent has discontinued filing electronically
for two consecutive years; the withholding agent’s TCC may have
been reassigned by IRS. Withholding agents who are aware that the
TCC assigned will no longer be used are requested to notify IRS so
these numbers may be reassigned;

The withholding agent’s electronic files were transmitted
in the past by a service bureau using the service bureau’s TCC,
but now the withholding agent has computer equipment compatible with
that of IRS and wishes to prepare his or her own files. The withholding
agent must request a TCC by filing Form 4419.

.09 One Form 4419 may be submitted
per TIN. Multiple TCCs will only be issued to withholding agents with
multiple TINs. Only one TCC will be issued per TIN unless the filer
has checked the application for the following forms in addition to
the Form 1042-S: Forms 1097, 1098, 1099, 3921, 3922, 5498, W-2G, 8935,
8955-SSA and/or 8027. A separate TCC will be assigned for these forms.

.10 Approval to file does not
imply endorsement by IRS of any computer software or of the quality
of tax preparation services provided by a service bureau or software
vendor.

Sec. 7. Due Dates

.01 The due dates for filing
paper returns with IRS also applies to electronic filing of Form 1042-S.
Filing of these returns is on a calendar year basis.

.02 Form 1042-S filed electronically
must be submitted to IRS on or before March 15.

.03 If any due date falls on
a Saturday, Sunday, or legal holiday, the return or statement is considered
timely if filed or furnished on the next day that is not a Saturday,
Sunday, or legal holiday.

.04 Statements to recipients
must be postmarked on or before March 15.

Sec. 8. Validation of Information Returns
at IRS Service Center

.01 The accuracy of data reported
on Form 1042-S is reviewed and validated at the IRS Service Center.
All fields indicated as “Required” in the record layouts
in Part C must contain valid information. If the Service identifies
an error, filers will be notified and required to provide correct
information.

.03 The tax rate entered must
be a valid tax rate based on the Internal Revenue Code or on a valid
treaty article. The valid treaty rate is based on the recipient’s
country of residence for tax purposes. The rate selected must be justified
by the appropriate treaty. A valid Tax Rate Table is located in the Instructions for Form 1042-S.

.04 The Gross Income amount
field must reflect pretax income. The Gross Income amount is the total
income paid before any deduction of tax at source. This amount field
must be reported in whole dollars only, rounding to the nearest dollar
amount.

.05 If a qualified intermediary,
withholding foreign partnership, or withholding foreign trust is acting
as such, either as a withholding agent or as a recipient, the TIN
reported must be a QI-EIN, WP-EIN, or WT-EIN and must begin with “98.”
See the definition of a QI in Part A, Sec 13 or in the Instructions
for Form 1042-S.

.06 Country Codes used must
be valid codes taken from the Country Code Table. Generally, the use
of “OC” or “UC” will generate an error condition.
If a recipient is claiming treaty benefits, the Country Code can never
be “OC” or “UC”.

.07 If a recipient is an “UNKNOWN
RECIPIENT” or “WITHHOLDING RATE POOL,” no address
should be present. These are the only two situations where a street
address is not required.

.08 A U.S. TIN for a recipient
is now generally required, particularly for most treaty benefits.
The exceptions are very limited and are listed in Publication 515
and the current Instructions for Form 1042-S.
Use recipient U.S. TIN type indicator 4 when a U.S. TIN is required
but was not provided. Reduced tax rates are not applicable when using
the TIN type 4 indicator.

.09 Apply the following formulas
to determine U.S. Federal Tax Withheld (field positions 359-370 of
the Recipient “Q” Record). Applying the formulas will
determine what the correct amount of withholding should be. If a different
amount was withheld, enter the amount that was actually withheld.
The U.S. Federal Tax Withheld amount must be added to Withholding
by Other Agents (field positions 371-382) and the total of the two
fields will be reflected in the Total Withholding Credit (field positions
383-394). Also, ensure the appropriate indicator is used in position
761 (U.S. Federal Tax Withheld Indicator). All field positions described
below are in the Recipient “Q” Record.

Income Codes (15, 16, 17, 18, 19 and 42)

All Other Income Codes

Gross Income (positions 6-17)

Gross Income (positions 6-17)

− Withholding Allowance (positions 18-29)

Χ Tax Rate (positions 42-45)

= Net Income (positions 30-41)

= U.S. Federal Tax Withheld (positions 359-370)

Χ Tax Rate (positions 42-45)

= U.S. Federal Tax Withheld (positions 359-370)

.10 The following is how to
correctly report an Unknown Recipient. All entries are in the Recipient
“Q” Record.

Tax Rate (positions 42-45) must be 3000.

Exemption Code (positions 46-47) is 00.

Recipient Code (positions 92-93) is 20.

Recipient’s Name Line-1 (positions 94-133) must have “UNKNOWN”
or “UNKNOWN RECIPIENT.”

Recipient’s Name Line-2 (positions 134-173) must be blank.

Recipient’s address (positions 214-337) must be blank.

Recipient’s Country Code (positions 338-339) is UC.

.11 When making a payment to
an international organization (such as, United Nations) or a tax-exempt
organization under IRC 501(a), use Country Code “OC.”
Use “UC” only when there is an “UNKNOWN RECIPIENT.”

.12 When using Exemption Code
4, the Recipient Country of Residence Code for Tax Purposes MUST be
a VALID treaty country (for example, if the recipient is a tax resident
of Northern Ireland use United Kingdom). Do not use Exemption Code
4 unless the exemption of tax is based on a treaty claim. If the tax
treaty reduces the tax rate but does not exempt the payment, enter
00 or blanks for the exemption code as indicated in the “Q”
Record instructions for positions 46-47.

.13 Generally, payments under
Income Codes 06 and 08 are not exempt from withholding, however, certain
exceptions apply. See the Instructions for Form 1042-S.

.14 If income is from gambling
winnings (Income Code 28) or is not specified (Income Code 50), the
tax rate must generally be 30%. This type of income is only exempt
from withholding at source if the exemption is based on a tax treaty.
These treaties are listed in Publication 515, Withholding
of Tax on Nonresident Aliens and Foreign Entities.

.15 If Income Code 42 or 43 (Earnings as an Artist or
Athlete) is used, the Recipient Code must be 09. Do not use Recipient
Code 01 (Individual), 02 (Corporation), or 03 (Partnership). Generally,
the tax rate cannot be reduced even if a treaty may apply. If compensation that otherwise would be covered under Income Codes
16 through 19 is directly attributable to the recipient’s occupation
as an artist or athlete, use Income Code 42 or 43 instead.

.16 When paying scholarship
and fellowship grants (Income Code 15), the Recipient’s Country
of Residence for Tax Purposes must be identified and cannot be “OC”
or “UC.” Grants that are exempt under Code Section 117
are not required to be reported on Form 1042-S.

Note

Note: Grants that are exempt
under IR Code 117 include only the amounts provided for tuition, fees,
books, and supplies to a qualified student. Amounts provided for room
and board can only be exempted under a tax treaty and must be reported
on Form 1042-S whether exempt from tax or not.

.17 If a student is receiving
compensation (Income Code 19), or a teacher, or a researcher is receiving
compensation (Income Code 18), all or part of which is exempted from
tax under a tax treaty, the Country of Residence for Tax Purposes
must be identified and cannot be “OC” or “UC.”

Sec. 9. Amended Returns

.01 If a Form 1042-S was filed
with the IRS and the filer later discovered an error in the filing,
an amended Form 1042-S must be filed as soon as possible.

Note

Note: If any information amended
on Form(s) 1042-S changes the information previously reported on Form
1042, the filer must also correct the Form 1042 by filing an amended
return.

.02 The electronic filing requirement
for information returns of 250 or more applies separately to both
original and amended returns.

E X A M P L E

If a withholding
agent has 100 Forms 1042-S to be amended, they can be filed on paper
because they fall under the 250 threshold. However, if the withholding
agent has 300 Forms 1042-S to be amended, they must be filed electronically
because they exceed the 250 threshold. If for some reason a withholding
agent cannot file the 300 amended returns electronically, to avoid
penalties, a request for a waiver must be submitted before filing
on paper. If a waiver is approved for original documents, any amended
returns for the same type of return will be covered under that waiver.

.03 Amended returns should
be filed as soon as possible. Amended returns filed after August 1
may be subject to the maximum penalty of $100 per return. Amended
returns filed by August 1 may be subject to a lesser penalty. For
information on penalties, refer to the Penalty section of the current
paper Instructions for Form 1042-S. However, if a withholding agent
discovers errors after August 1, the withholding agent is still required
to file amended returns or be subject to a penalty for intentional
disregard of the filing requirements. If a record is incorrect, all
fields on that record must be completed with the correct information.
Submit amended returns only for the returns filed in error. Do not
submit the entire file. Furnish amended statements to recipients as
soon as possible.

Note

Note: Do not include original
returns and amended returns in the same electronic file.

.04 If filers discover that
certain information returns were omitted on their original file, they
must not code these documents as amended returns. The file must be
coded and submitted as an original file.

.05 Prior year data, original
and amended, must be filed according to the requirements of this Revenue
Procedure. If submitting prior year amended returns, use the record
format for the current year and submit in a separate transmission.
Use the actual year designation of the amended return in Field Positions
2-5 of the Transmitter “T” Record. A separate electronic
transmission must be made for each tax year.

.06 In general, filers should
submit amended returns for returns filed within the last 3 calendar
years.

.07 All paper returns, whether
original or amended, must be filed with:

Internal Revenue Service

Ogden Service Center

P.O. Box 409101

Ogden, UT 84409

.08 The Recipient “Q”
Record provides a 20-position field (positions 72-91) for the recipient’s
account number assigned by the withholding agent. This number should
be included on the initial return and on the amended return. This
is especially important when more than one information return of the
same type is reported for a recipient. The account number is used
by IRS to determine which information return is being amended. It
is vital that each information return reported for a recipient have
a unique account number. Do not enter a TIN in this field.

.09 The record sequence for
filing amended returns is the same as for original returns.

.10 Following is a chart showing
the steps to take when amending Form 1042-S:

Guidelines for Filing Amended Returns
Electronically

One transaction
is required to make the following corrections properly.

Error Made on the Original Return

How To File the Amended Return

ERROR TYPE 1

CORRECTION

1.

Original return was
filed with one or more of the following errors:

A.

Prepare a new file. The first record on the file
will be the Transmitter “T” Record.

Note 1: If a Form
1042-S was submitted in error, all fields must be exactly the same
as the original record except all money amounts must be zeros.

B.

Make a separate “W” Record
for each withholding agent being reported with a Return Type Indicator
of “1” (1 = Amended) in field position 2. Enter a “G”
(Amended Return Indicator) in position 810.

C.

The Recipient “Q” Records
must show the correct record information with a Return Type Indicator
of “1” for amended in field position 2. (See Note 1.) Enter a “G” (Amended Return
Indicator) in position 810.

D.

Prepare a separate Reconciliation
“C” Record for each withholding agent (“W”
Record) being reported summarizing the preceding amended “Q”
Records.

E.

The last record on the file will be the End of Transmission
“F” Record.

File layout one step corrections

Transmitter “T”
Record

Amended coded Withholding Agent “W” Record

Amended coded Recipient “Q” Record

Amended coded Recipient “Q” Record

Reconciliation “C” Record

End of Transmission “F” Record

Guidelines for Filing Amended Returns
Electronically

Two (2)
separate transactions (files) are required to make the following corrections
properly. Follow the guidelines for both Transactions 1 and 2. Do
not use the two step correction process to correct money amounts.

Error Made on the Original Return

How To File the Amended Return

ERROR TYPE 2

CORRECTION

1.

Original
”Q” Records were filed with one or more of the following
errors:

Note 2: The Record
Sequence Number will be different since this is a counter number and
is unique to each file.

A.

Prepare a new file. The
first record on the file will be the Transmitter “T” Record.

B.

Make a separate “W”
Record for each withholding agent being reported. The information
in the “W” Record will be exactly the same as it was in
the original submission except for the Return Type Indicator of “1”
(1 = Amended) in field position 2 and the Amended Return Indicator
in position 810 must be a “G”. (See Note 2.)

C.

The Recipient “Q” Records
must contain exactly the same information as submitted previously,
except, insert the Amended Return Indicator Code of “1”
in Field Position 2 of the “Q” Records, and enter “0”
(zeros) in all payment amounts. Enter the Return Type Indicator of
“1” in position 2 and the Amended Return Indicator of
“G” in position 810 of all “Q” Records. (See Note 2.)

D.

Prepare a separate Reconciliation “C”
Record for each withholding agent being reported summarizing the preceding
“Q” Records.

E.

Continue with Transaction 2 to complete the correction. (See Note 3.)

Note 3: Step 1 and Step 2 can be included in the same electronic file. If
separate files for Step 1 and Step 2 are submitted, each file must
have a complete set of “T, W, Q, C and F” records.

Transaction 2: Report the correct information.

A.

Make a separate “W” Record for each
withholding agent being reported. The Return Type Indicator must be
“1” in position 2. The Amended Indicator of “C”
must be entered in position 810.

B.

The Recipient “Q” Records must show
the correct information. The Return Type Indicator in position 2 must
be “1” and the Amended Return Indicator must be “C”.

C.

Prepare a separate Reconciliation “C”
Record for each withholding agent being reported summarizing the preceding
“Q” Records.

D.

The last record on the file will be the End of Transmission
“F” Record.

File layouts two step corrections

STEP 1 FILE

Transmitter “T”
Record

Amended coded Withholding Agent “W” Record

Amended coded Recipient “Q” Record

Amended coded Recipient “Q” Record

Amended coded Recipient “Q” Record

Reconciliation “C” Record

STEP 2 FILE

Amended coded Withholding
Agent “W” Record

Amended coded Recipient “Q” Record

Amended coded Recipient “Q” Record

Amended coded Recipient “Q” Record

Reconciliation “C” Record

End of Transmission “F” Record

.11 When correcting the Withholding
Agent “W” Record, follow the two step correction process.
When the “W” Record is being corrected, every Recipient
“Q” Record reported under that incorrect “W”
Record must be amended by zero filling all of the amount fields as
described in Error Type 2, Transaction 1.

.12 For information on when
an amended Form 1042 is required, refer to the Instructions
for Form 1042.

Sec. 10. Taxpayer Identification Number
(TIN)

.01 Section 6109 of the Internal
Revenue Code establishes the general requirements under which a person
is required to furnish a U.S.TIN to the person obligated to file the
information return.

.02 The Withholding Agent must
provide its EIN, QI-EIN, WP-EIN or WT-EIN as appropriate, in the “W”
Record and “T” Record, if the Withholding Agent is also
the transmitter.

.03 A recipient U.S.TIN (SSN,
ITIN, EIN, QI-EIN, WP-EIN, WT-EIN) must be provided on every “Q”
Record when:

The tax rate is less than 30% (See the Instructions
for Form 1042-S for exceptions.)

The income is effectively connected with the conduct of a trade
or business in the United States

A recipient claims tax treaty benefits (generally)

The recipient is a Qualified Intermediary

An NRA individual is claiming exemption from withholding on
independent personal services

Other situations may apply, see Publication 515, Withholding
of Tax on Nonresident Aliens and Foreign Entities

.04 In the event the recipient
does not have a U.S.TIN, the withholding agent should advise the recipient
to take the necessary steps to apply for one.

.05 The recipient’s U.S.TIN
and name combination are used to associate information returns reported
to IRS with corresponding information on the recipient’s tax
return. It is imperative that correct U.S.Taxpayer Identification
Numbers (TINs) for recipients be provided to IRS. Do not enter hyphens
or alpha characters. Entering all zeros, ones, twos, etc., will have
the effect of an incorrect TIN.

.06 The withholding agent and
recipient names with associated TINs should be consistent with the
names and TINs used on other tax returns.

Note

Note: A withholding agent must
have a valid EIN, QI-EIN, WP-EIN, and/or WT-EIN. It is no longer valid
for a withholding agent to use SSNs and ITINs.

Sec. 11. Effect on Paper Returns and
Statements to Recipients

.01 Electronic reporting of
Form 1042-S eliminates the need to submit paper documents to the IRS.

Note

CAUTION: Do not send Copy A
of the paper forms to the IRS for any forms filed electronically.
This may result in duplicate filing.

.02 Withholding agents are
responsible for providing statements to the recipients as outlined
in the current Instructions for Form 1042-S.
Refer to the Instructions for Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding for guidance on furnishing statements to recipients.

.03 Statements to recipients
should be clear and legible. If the official IRS form is not used,
the filer must adhere to the specifications and guidelines in Publication
1179, General Rules and Specifications for Substitute Forms
1096, 1098, 1099, 5498, and Certain Other Information Returns.

.04 The address for filing
paper Forms 1042-S and Form 1042 is:

Internal Revenue Service

Ogden Service Center

P.O. Box 409101

Ogden, UT 84409

Do not send paper Forms 1042-S or 1042 to IRB.

Sec. 12. Penalties Associated With Information
Returns

.01 The following penalties
generally apply to the person required to file information returns.
The penalties apply to electronic filers as well as to paper filers.

.02Failure To File
Correct Information Returns by the Due Date (Section 6721). If you fail to file a correct information return by the due date
and you cannot show reasonable cause, you may be subject to a penalty.
The penalty applies if, you fail to file timely, if you fail to include
all information required to be shown on a return, or if you include
incorrect information on a return. The penalty also applies if you
file on paper when you were required to file electronically, you report
an incorrect TIN or fail to report a TIN, or you fail to file paper
forms that are machine readable.

The amount of the penalty is based on when you file the correct
information return. The penalty is:

$30 per information return
if you correctly file within 30 days of the due date of the return
(See Part A, Sec. 7.02); maximum penalty $250,000 per year ($75,000
for small businesses).

$60 per information return
if you correctly file more than 30 days after the due date but by
August 1; maximum penalty $500,000 per year ($200,000 for small businesses).

$100 per information return
if you correctly file after August 1 or you do not file required information
returns; maximum penalty $1.5 million per year ($500,000 for small
businesses).

.03 A late filing penalty may
be assessed for a replacement file which is not transmitted by the
required date. See Part B, Sec. 4.05, for more information on replacement
files.

.04Intentional disregard
of filing requirements. If failure to file a correct information
return is due to intentional disregard of the filing or correct information
requirements, the penalty is at least $250 per information return
with no maximum penalty.

.05Failure To Furnish
Correct Payee Statements (Section 6722). Refer to Instruction
for Form 1042-S for information regarding penalties which may apply
for a failure to furnish correct payee statements.

Sec. 13. Definition of Terms

Element

Description

Amended Return

An amended return is an information return submitted by the
transmitter to amend an information return that was previously submitted
to and processed by IRS, but contained erroneous information.

Beneficial Owner

The beneficial owner of income is, generally, the person who
is required under U.S. tax principles to include the income in gross
income on a tax return. For additional information and special conditions
see Definitions in the Instructions for Form 1042-S.

Employer Identification Number (EIN)

A nine-digit number assigned by IRS for federal tax reporting
purposes.

Electronic Filing

Submission of information returns electronically by the Internet.
See Part B of this publication for specific information on electronic
filing.

File

For purposes of this Revenue Procedure, a file consists of
one Transmitter “T” Record at the beginning of the file,
a Withholding Agent “W” Record, followed by the Recipient
“Q” Record(s), a Reconciliation “C” Record
summarizing the number of preceding “Q” Records and total
of preceding money fields. Follow with any additional “W”,
“Q”, and “C” Record sequences as needed. The
last record on the file is the End of Transmission “F”
Record. Nothing should be reported after the End of Transmission “F”
Record.

The calendar year in which the information returns are being
submitted to IRS.

Flow-Through Entity

A flow-through entity is a foreign partnership (other than
a withholding foreign partnership) or a foreign simple or grantor
trust (other than a withholding foreign trust). For any payments for
which a reduced rate withholding under an income tax treaty is claimed,
any entity is considered to be a flow-through entity if it is considered
to be fiscally transparent under IRC Section 894 with respect to the
payment by an interest holder’s jurisdiction.

Foreign Person

A foreign person includes a nonresident alien individual, a
foreign corporation, a foreign partnership, a foreign trust, a foreign
estate, and any other person who is not a U.S. person. The term also
includes a foreign branch or office of a U.S. financial institution
or U.S. clearing organization, if the foreign branch is a Qualified
Intermediary. Generally, a payment to a U.S. branch of a foreign institution
is a payment to a foreign person.

Gross Income

Gross income includes income from all sources, except certain
items expressly excluded by statute. Gross income is the starting
point for computing adjusted gross income and taxable income.

Individual Taxpayer Identification Number (ITIN)

A nine-digit number issued by IRS to individuals who are required
to have a U.S. taxpayer identification number for tax purposes but
are not eligible to obtain a Social Security Number (SSN). An ITIN
may be used for tax purposes only.

Information Return

The vehicle for withholding agents to submit required tax information
about a recipient to IRS. For this Revenue Procedure, it is information
about a foreign person’s U.S. source income subject to withholding,
and the information return is Form 1042-S.

Intermediary

An intermediary is a person who acts as a custodian, broker,
nominee, or otherwise as an agent for another person, regardless of
whether that other person is the beneficial owner of the amount paid,
a flow-through entity, or another intermediary.

Nonqualified Intermediary (NQI)

A Nonqualified Intermediary is a foreign intermediary who is
not a U.S. person and is not a Qualified Intermediary.

Payer

A payer is the person for whom the withholding agent acts as
a paying agent pursuant to an agreement whereby the withholding agent
agrees to withhold and report a payment.

Presumption Rules

The presumption rules are those rules prescribed under Chapter
3 and Chapter 61 of the Internal Revenue Code that a withholding agent
must follow to determine the status of a beneficial owner as a U.S.
or foreign person when it cannot reliably associate a payment with
valid documentation.

Pro-Rata Basis Reporting

If the withholding agent has agreed that an NQI may provide
information allocating a payment to its account holders under the
provisions of Regulations section 1.1441-1(e) (3) (iv) (D), and the
NQI fails to allocate payment in a withholding rate pool to the specific
recipients in the pool, the withholding agent must file a Form 1042-S
for each recipient on a pro-rata basis.

Qualified Intermediary (QI)

A Qualified Intermediary is a foreign intermediary who is a
party to a withholding agreement with the IRS, in which it agrees
to comply with the relevant terms of Chapters 3 and 61 of the Internal
Revenue Code and is in a country with approved know your- customer
rules. See Notice 2006-35.

Qualified Intermediary Employer Identification

A nine-digit number assigned by IRS to a QI for Federal tax
reporting purposes. A QI-EIN is only to be used when a QI is acting
as a qualified intermediary.

Recipient

Person (nonresident alien individual, fiduciary, foreign partnership,
foreign corporation, Qualified Intermediary, Withholding Rate Pool,
or other foreign entity) who receives payments from a withholding
agent as a beneficial owner or as a qualified intermediary acting
on behalf of a beneficial owner. A non-qualified intermediary cannot
be a recipient.

Replacement File

A replacement file is an information return file sent by the
filer at the request of IRS because of certain errors encountered
while processing the filer’s original submission.

Service Bureau

Person or organization with whom the withholding agent has
a contract to prepare and/or submit information return files to IRS.
A parent company submitting data for a subsidiary is not considered
a service bureau.

Social Security Number (SSN)

A nine-digit number assigned by the Social Security Administration
to an individual for wage and tax reporting purposes.

Special Character

Any character that is not a numeric, an alpha, or a blank.
The only special characters that are acceptable within an electronic
file are ampersand (&), hyphen (-), comma (,), apostrophe (’),
forward slash (/), pound sign (#), period (.), and the percent (%).

Taxpayer Identification Number (TIN)

Refers to either an Employer Identification Number (EIN), Social
Security Number (SSN), Individual Taxpayer Identification Number (ITIN),
or a Qualified Intermediary Employer Identification Number (QI-EIN).

Tax Year

The year in which payments were made by a withholding agent
to a recipient.

Transmitter

Refers to the person or organization submitting file(s) electronically.
The transmitter may be the payer, agent of the payer, or withholding
agent.

Transmitter Control Code (TCC)

A five-character alphanumeric number assigned by IRS to the
transmitter prior to filing electronically. An application Form 4419
must be filed with IRS to receive this number. This number is inserted
in the Transmitter “T” Record (field positions 190-194)
of the file and must be present before the file can be processed.
Transmitter Control Codes assigned to 1042-S filers will always begin
with “22”.

Unknown Recipient

For this Revenue Procedure, an unknown recipient is a recipient
for whom no documentation has been received by a withholding agent
or intermediary or for which documentation received cannot be reliably
associated. This includes incomplete documentation. An unknown recipient
is always subject to withholding at the maximum applicable rate. No
reduction of or exemption from tax may be applied under any circumstances.

Vendor

Vendors include service bureaus that produce information return
files for withholding agents. Vendors also include companies that
provide software for those who wish to produce their own electronic
files.

Withholding Agent

Any person, U.S. or foreign, who has control, receipt, or custody
of an amount subject to withholding or who can disburse or make payments
of an amount subject to withholding. The withholding agent may be
an individual, corporation, partnership, trust, association, or any
other entity. The term withholding agent also includes, but is not
limited to, a qualified intermediary, a nonqualified intermediary,
a withholding foreign partnership, a withholding foreign trust, a
flow-through entity, a U.S. branch of a foreign insurance company
or foreign bank that is treated as a U.S. person, and an authorized
foreign agent. A person may be a withholding agent under U.S. law
even if there is no requirement to withhold from a payment or even
if another person has already withheld the required amount from a
payment.

A foreign partnership or trust that has entered into a withholding
or Withholding Foreign Trust agreement with the IRS in which it agrees
to assume primary withholding responsibility for all payments that
are made to it for its partners, beneficiaries, or owners.

Sec. 14. State Abbreviations

.01 The following state and
U.S. territory abbreviations must be used when developing the state
code portion of address fields. This table provides state and territory
abbreviations.

Table 4: State & U.S. Territory Abbreviations

State

Code

State

Code

State

Code

Alabama

AL

Kentucky

KY

Ohio

OH

Alaska

AK

Louisiana

LA

Oklahoma

OK

American Samoa

AS

Maine

ME

Oregon

OR

Arizona

AZ

Maryland

MD

Pennsylvania

PA

Arkansas

AR

Massachusetts

MA

Puerto Rico

PR

California

CA

Michigan

MI

Rhode Island

RI

Colorado

CO

Minnesota

MN

South Carolina

SC

Connecticut

CT

Mississippi

MS

South Dakota

SD

Delaware

DE

Missouri

MO

Tennessee

TN

District of Columbia

DC

Montana

MT

Texas

TX

Florida

FL

Nebraska

NE

Utah

UT

Georgia

GA

Nevada

NV

Vermont

VT

Guam

GU

New Hampshire

NH

Virginia

VA

Hawaii

HI

New Jersey

NJ

(U.S.) Virgin Islands

VI

Idaho

ID

New Mexico

NM

Washington

WA

Illinois

IL

New York

NY

West Virginia

WV

Indiana

IN

North Carolina

NC

Wisconsin

WI

Iowa

IA

North Dakota

ND

Wyoming

WY

Kansas

KS

No. Mariana Islands

MP

.02 When reporting APO/FPO
addresses, use the following format:

EXAMPLE:

Recipient Name:

PVT Willard J. Doe

Mailing Address:

Company F, PSC Box 100 167 Infantry REGT

Recipient City:

APO (or FPO)

Recipient State:

AE, AA, or AP*

Recipient ZIP Code:

098010100

*AE is the designation for ZIP
codes beginning with 090-098, AA for ZIP code 340, and AP for ZIP
codes 962-966.

Part B. Electronic Filing Specifications

Note

Note 1: The Filing Information
Returns Electronically (FIRE) system does not provide fill-in forms,
except for Form 8809, Application for Extension of Time
to File Information Returns. Filers must program files
according to the Record Layout Specifications contained in this publication.
For a list of software providers, log on to www.IRS.gov and type “Business e-file Providers” in the
search box. (See Part A, Sec. 5.)

Note

Note 2: The FIRE system has
scheduled downtime every Wednesday from 2:00 a.m. to 5:00 a.m. (ET)
for programming updates and for two weeks at the end of December for
yearly updates. The FIRE system will not be available for submissions
during these times.

Sec. 1. General

.01 Electronic filing of Form
1042-S (originals, amended and replacement files) is a reporting method
for filers submitting 250 or more Forms 1042-S. Payers who are under
the filing threshold requirement are encouraged to file electronically.

.02 All electronic filing
of information returns are received at IRS through the Filing Information
Returns Electronically (FIRE) system. To connect to the FIRE system,
point the browser to http://fire.irs.gov. The
system is designed to support the electronic filing of information
returns only.

.03 For files submitted through
the FIRE system, it is the responsibility of the filer to check the
status of the file within five business days to verify the results
of the transmission. Information about the errors including the number
of errors, a description, and the first occurrence will be provided
on the FIRE system. If additional information is needed to understand
the errors, the filer can call 1-866-455-7438 or outside the U.S.
at 1-304-263-8700.

.04 The electronic filing
of information returns is not affiliated with any other IRS electronic
filing programs. Filers must obtain separate approval to participate
in each program. Only inquiries concerning electronic filing of information
returns should be directed to IRB.

.05 Files submitted to IRS
electronically must be in standard ASCII code. See Part C, Record
Format Specifications and Record Layouts, for the proper record format.
Do not send paper forms with the same information as electronically
submitted files. This may create duplicate reporting resulting in
penalty notices.

.06 Form 8809, Application
for Extension of Time to File Information Returns, is available
as a fill-in form on the FIRE system. Filers that do not already have
a User ID and password should refer to Part B, Sec. 7. At the Main
Menu, click “Extension of Time Request” and then click
“Fill-in Extension Form.” This option is only used to
request an automatic 30-day extension and must be completed by the
due date of the return for each withholding agent requesting an extension.
Print the approval page for your records. Refer to Part D for additional
details.

Sec. 2. Electronic Filing Approval Procedure

.01 Filers must obtain a Transmitter
Control Code (TCC) prior to submitting files electronically. Refer
to Part A, Sec. 6, for information on how to obtain a TCC.

.02 Once a TCC is obtained,
electronic filers must create their own user ID, password, and Personal
Identification Number (PIN). See Part B, Sec. 5, for more information
on the PIN requirements.

.03 If a filer is submitting
files for more than one TCC, it is not necessary to create a separate
User ID and password for each TCC.

.04 All passwords must remain
confidential. It is the user’s responsibility to remember the
password and not allow the password to be compromised. Passwords are
created by the user during the first logon and must be eight alphanumeric
characters containing at least one uppercase, one lowercase, and one
numeric. The FIRE system requires users to change passwords every
90 days or at the first logon attempt after that time period. Users
can change passwords at any time from the Main Menu. The previous
24 passwords cannot be used. Filers who forget the password or PIN
may call 1-866-455-7438 or outside the U.S. at 1-304-263-8700 for
assistance.

Sec. 3. Test Files

.01 Filers are not required
to submit a test file; however, the submission of a test file is encouraged
for all new electronic filers to test hardware and software. If filers
wish to submit an electronic test file for Tax Year 2012 (returns to be filed in 2013), it must be submitted to IRS no earlier
than November 1, 2012, and no later than February 15, 2013.

.02 IRS encourages all electronic
filers to submit a test. To connect to the FIRE test system, point
the browser to http://fire.test.irs.gov.

.03 The test file must consist
of a sample of each type of record:

(a) Transmitter “T” Record

(b) Withholding Agent “W” Record

(c) Multiple Recipient “Q” Records (at least 11
recommended)

(d) Reconciliation “C” Record

(e) End of Transmission “F” Record

.04 Use the Test Indicator
“TEST” (upper case) in Field Positions 195-198 of the
“T” Record to show this is a test file.

.05 IRS will check the file
to ensure it meets the specifications of this Revenue Procedure. For
current filers, sending a test file will provide the opportunity to
ensure the software reflects all required programming changes. Filers
are reminded that not all validity, consistency, or math error tests
will be conducted.

.06 Filers who encounter problems
while transmitting the electronic test file can contact IRS at 1-866-455-7438
or outside the U.S. at 1-304-263-8700 for assistance.

.07 Within five days after
a file has been submitted, filers will be notified by email as to
the acceptability of the file if a valid email address was provided
on the “Verify Your Filing Information” screen. If using
email filtering software, configure the software to accept email from fire@irs.gov and irs.e-helpmail@irs.gov. If the file is bad or an email has not been received within five
days, the filer must return to http://fire.test.irs.gov to determine what errors are in the file by clicking on CHECK FILE
STATUS.

Sec. 4. Electronic Submissions

.01 Electronically filed information
may be submitted to IRS 24 hours a day, seven days a week. Technical
assistance is available Monday through Friday between 8:30 a.m. and
4:30 p.m. (ET) by calling 1-866-455-7438 or outside the U.S. at 1-304-263-8700.

.02 The FIRE system has scheduled
downtime from December 14, 2012 through January 2, 2013. This allows IRS to make yearly updates to reflect current year
changes. In addition, the FIRE system may be down every Wednesday
from 2:00 a.m. to 5:00 a.m. (ET) for programming updates. The FIRE
system will not be available for submissions during these times.

.03 A file may not exceed
899,999 records. When sending files larger than 10,000 records electronically,
data compression is encouraged. WinZip and PKZip are the only acceptable
compression packages. IRS cannot accept self-extracting zip files
or compressed files containing multiple files. The time required to
transmit information returns electronically will vary depending on
the type of connection to the internet and if data compression is
used. The time required to transmit a file can be reduced by as much
as 95 percent by using compression. Transmitters that experience problems
transmitting files with a scripting process should contact IRS at
1-866-455-7438 or 1-304-263-8700 for assistance.

.04 Transmitters may create
files using self assigned filename(s). Files submitted electronically
will be assigned a new unique filename by the FIRE system. The filename
assigned by the FIRE system will consist of submission type (TEST,
ORIG [original], AMEN [amended return], and REPL [replacement]), the
filer’s TCC, and a four-digit sequence number. The sequence
number will be incremental for every file sent. For example, if this
is the first original file for the calendar year and the TCC is 22000,
the IRS assigned filename would be ORIG.22000.0001. Record the filename.
This information will be needed by IRS to identify the file if assistance
is required.

.05 If a file is submitted
timely, but is “bad,” the filer will have up to 60 days
from the day the file was transmitted to transmit an acceptable replacement
file. If an acceptable replacement file is not received within 60
days, the payer could be subject to late filing penalties. This only
applies to files originally submitted electronically.

.06 The following definitions
have been provided to help distinguish between an amended return and
a replacement:

An amended return is an information
return submitted by the transmitter to correct an information return
that was previously submitted to and processed by IRS, but contained
erroneous information.

Note

Note: Amended returns should
only be submitted for records that have been submitted incorrectly,
not the entire file.

A replacement is an information
return file sent by the filer because the CHECK FILE STATUS option
on the FIRE system indicated the original/amended file was bad. After
the necessary changes have been made, the file must be transmitted
through the FIRE system.

Note

Note: Filers should never transmit
anything to IRS as a “Replacement” file unless the CHECK
FILE STATUS option on the FIRE system indicates the file is bad.

.07 The TCC in the Transmitter
“T” Record must be the TCC used to transmit the file;
otherwise, the file will be considered an error.

Sec. 5. PIN Requirements

.01 The user will be prompted
to create a PIN consisting of ten (10) numeric characters when establishing
an initial User ID name and password.

.02 The PIN is required each
time an ORIGINAL, AMENDED, or REPLACEMENT file is sent electronically
and is permission to release the file. It is not needed for a TEST
file. An authorized agent/transmitter may enter their PIN; however,
the withholding agent is responsible for the accuracy of the returns.
The withholding agent will be liable for penalties for failure to
comply with filing requirements. If there is a problem with a PIN,
filers should call 1-866-455-7438 or outside the U.S. at 1-304-263-8700
for assistance.

.03 If the file is “good”,
it is released for mainline processing after ten (10) calendar days
from receipt. Contact IRS within this ten-day period if there is a
reason the file should not be released for further processing.

.04 If the file is bad, follow
normal replacement procedures.

Sec. 6. Electronic Filing Specifications

.01 The FIRE system is designed
exclusively for the filing of Forms 1042-S, 1097, 1098, 1099, 3921,
3922, 5498, 8027, 8955-SSA and W-2G.

.02 A transmitter must have
a TCC (see Part A, Sec. 6) before a file can be transmitted.

.03 Within five days of the
electronic transmission, the results of the electronic transmission(s)
will be sent to the email address that was provided on the “Verify
Your Filing Information” screen. If using email filtering software,
configure the software to accept email from fire@irs.gov and irs.e-helpmail@irs.gov. If the file is
bad, the filer must return to http://fire.irs.gov (orhttp://fire.test.irs.gov if a test file) to determine what errors are in the file by clicking
on “CHECK FILE STATUS.”

Create and verify the ten-digit self-assigned Personal Identification
Number (PIN)

Click “Submit”

If the message “Your PIN has been
successfully created!” is received, click “OK”

Read the bulletin(s) and/or “Click
here to continue”

.08 Subsequent connections to the FIRE System

Click “Log On”

Enter the User ID

Enter the Password (The password
is case sensitive)

Read the bulletin(s) and/or “Click
here to continue”

.09 Uploading a file to the FIRE System

At the Menu
Options:

Click “Send Information Returns”

Enter the TCC

Enter the TIN

Click “Submit”

The system
will display the company name, address, city, state, ZIP code, telephone
number, contact, and email address. This information will be used
to email the transmitter regarding the transmission. Update as appropriate
and/or click “Accept.”

Note: Please provide an accurate email address for the correct person
to receive the email and to avoid having the email returned to IRS
as undeliverable. If SPAM filtering software is being used, configure
it to allow an email from fire@irs.gov and irs.e-helpmail@irs.gov.

Click one
of the following:

Original File

Replacement File

Amended File

Test File (This option will
only be available from November 1 through February 15 at http://fire.test.irs.gov.)

Enter the ten-digit PIN (If sending a test file, there is no
prompt for this.)

Click “Submit”

Click “Browse”to
locate the file and open it

Click “Upload”

When the
upload is complete, the screen will display the total bytes received
and the IRS assigned filename for the file. If this information is
not displayed on the screen, IRS may not have received the file.

To verify, go to the
“CHECK FILE STATUS” option on the Main Menu. If the filename
is displayed, the count is equal to “0,” and the results
indicate “not yet processed,” IRB received the file. If
the filename is not displayed, send the file again.

If there
are more files to upload for that TCC:

Click “File Another?” otherwise

Click “Main Menu”

It is the
filer’s responsibility to check the acceptability of submitted
files. If an email is not received within five business days or an
email is received and it indicates the file is bad, log back into
the FIRE system and click on CHECK FILE STATUS to view the results
of the file.

.10 Checking the FILE STATUS

If the correct email address was
provided on the “Verify Your Filing Information” screen
when the file was sent, an email will be sent regarding the FILE STATUS.
If the results in the email indicate “Good, not Released”
and the “Count of Payees” is correct, the filer is finished
with this file. If the email indicates any other results, follow the
instructions below.

—At the Main Menu:

Click “Check File Status”

Enter the TCC

Enter the TIN

Click “Search”

—If the “Results”
indicate:

“Good, Not Released” - If the “Count of Payees” is correct, the filer is
finished with this file. The file will automatically be released after
ten calendar days unless the filer contacts IRB within this timeframe.

“Good, Released” - The file has been released to our mainline processing.

“Bad” - The file has errors. Click on the filename to view the error message(s).
Fix the errors, and resubmit the file timely as a “replacement.”

“Not yet processed” - The file has been received, but results are not available. Please
check back in a few days.

—Click
on the desired file for a detailed report of your transmission.

When finished, click “Log Out”

Click “Close Web Browser”

Sec. 8. Common Problems and Questions

.01 Publication 1187 is a
Revenue Procedure used to provide the electronic filing specifications
and format to filers of Forms 1042-S, it is not a tax law document.
Therefore, this publication cannot provide for all possible reporting
situations. For any given record entry, it is the responsibility of
the filer to make sure the relevant tax law is applied to the record
entry being made.

FORMAT ERRORS

1. Incorrect TIN indicator in the “W” Record.

Ensure the correct
TIN Indicator is used. A U.S. withholding agent always has an EIN.
Only a foreign withholding agent that has entered into a Qualified
Intermediary agreement with the IRS can have a QI-EIN. If the withholding
agent is a foreign company, then a foreign address must be entered
in the withholding agent address fields.

2. Blank or invalid information in the Withholding Agent’s
name and address fields.

The IRS error correction
process requires that the “W” Record be checked for validity
before the “Q” Record can be corrected. Ensure that the
withholding agent’s Name, EIN, Street Address, City, and State
or Country is present along with the appropriate Postal or ZIP Code.
The Withholding Agent’s Name Line-1 must contain the withholding
agent’s name.

3. Missing Recipient TIN in the “Q” Record.

A Recipient TIN must
be present in order to allow a reduction or exemption from withholding
at the 30% tax rate. The only major exceptions to this rule involve
payments of portfolio interest, dividends, and certain royalty payments.
If the recipient doesn’t have a TIN, one must be applied for
and provided to the withholding agent before a reduction or exemption
of withholding is allowed.

4. Invalid recipient name and address information.

The recipient name
entered in Recipient’s Name Line-1 must be the same name shown
on the withholding certification document provided to and retained
by the withholding agent. Recipient’s Street Line-1 should only
show the official street address. Use Recipient’s Street Line-2
for additional internal distribution information such as mail stop
numbers or attention information. Follow the instructions for entry
of foreign postal codes, cities, and countries. Do not input all information
in the City field. Use the appropriate fields and codes.

5. Incorrect use of Recipient Code 20 (Unknown Recipient).

This Recipient Code
may be used only if no withholding certification document has been
provided to and retained by the withholding agent, or the withholding
certification document provided to and retained has been determined
by the withholding agent to be incomplete or otherwise unreliable.
If Recipient Code 20 is used, the Recipient Name Line-1 must contain
the words “UNKNOWN” or “UNKNOWN RECIPIENT”
and the other name and address fields must be blank.

6. Incorrect use of Recipient Code 20 and the Tax Rate and U.S. Tax
Withheld fields.

If Recipient Code 20
is used, the Tax Rate and the U.S. Tax Withheld must always be 30%.
Exemption Code 04 (treaty exemption) is not allowed when using Recipient
Code 20.

7. Incorrect use of Country Codes in the “Q” Record.

There are three places
in the “Q” Record where country information must be entered.
Generally, the information entered in these three fields should be
consistent. The country list in the Instructions for Form
1042-S is comprehensive. Do not use any code that is not
on the list. Read the Instructions for Form 1042-S regarding the use of “OC” and “UC.” Do not
use these two codes under any other circumstances than those specifically
indicated in the instructions.

8. Incorrect reporting of Tax Rates in the “Q” Record.

A valid Tax Rate Table
is included in the Instructions for Form 1042-S. Please refer to the table and only use the tax rates listed. “Blended
rates” are not allowed. If a tax rate for a given recipient
changes during the year, two “Q” Records must be submitted.

9. Total amounts reported in the “C” Record do not equal
the total amounts reported in the “Q” Records.

The total Gross Income
and Total Withholding Credit reported in the “Q” Records
must equal the Total Gross Income and Total Withholding Credit reported
in the corresponding “C” Record.

10. The following are other major errors associated with electronic
filing:

a. Invalid characters. The only valid characters are those
characters listed in Note 3 at the beginning of the “T,”
“W,” and “Q” Records.

e. “Q” Record Positions 46-47 (Exemption
Code) must reflect a valid code and the exemption code must be compatible
with the tax rate. For example, if a zero tax (0000) rate is entered
in positions 42-45, the appropriate exemption code of 01-09 must be
used in positions 46-47.

NON-FORMAT ERRORS

1. SPAM filters are not set to receive email from fire@irs.gov and irs.ehelpmail@irs.gov.

To receive emails concerning
files, processing results, reminders and notices, set the SPAM filter
to receive email from fire@irs.gov and irs.e-helpmail@irs.gov.

2. Incorrect email provided.

When the “Verify
Your Filing Information” screen is displayed, make sure the
correct email address is listed. If not, update the screen with the
correct email address.

3. Transmitter does not check the FIRE system to determine why the
file is bad.

Generally, the results
of a file transfer are posted to the FIRE system within five business
days. If the correct email address was provided on the “Verify
Your Filing Information” screen when the file was sent, an email
will be sent regarding the FILE STATUS. If the results in the email
indicate “Good” for test, or “Good, Not Released”
for production and the “count of payees” is correct, the
filer is finished with this file. If any other results are received,
follow the instructions in the “Check File Status” option.
If the file contains errors, get an online listing of the errors.
If the file status is good, but the file should not be processed,
contact IRS within ten calendar days from the transmission of the
file.

Filers must use the
Form 1042-S TCC, which begins with “22,” to transmit Form
1042-S files. If the correct TCC is not used, it will automatically
be considered an error.

5. Incorrect file is not replaced timely.

If a file is bad, fix
the file, and resubmit timely as a replacement. An acceptable replacement
file must be submitted within 60 days from the day the original file
was transmitted.

6. Transmitter compresses several files into one.

Only compress one file
at a time. For example, if there are ten uncompressed files to send,
compress each file separately and send ten separate compressed files.

7. Transmitter sends a file and “CHECK FILE STATUS” indicates
that the file is good, but the transmitter wants to send another file
containing the same information.

Once a file has been
transmitted, a replacement file cannot be sent unless “CHECK
FILE STATUS” indicates the file is bad (five business days after
the file was transmitted). If a file should not be processed, contact
IRS at 1-866-455-7438 or outside the U.S. at 1-304-263-8700 to see
if this is a possibility.

8. Transmitter sends an original file that is good, and then sends
an amended file for the entire file even though there are only a few
changes.

The amended file, containing
the proper coding, should only contain the records needing correction,
not the entire file. Improper submission can result in duplicate reporting
of payee information.

9. File is formatted as EBCDIC.

All files submitted
electronically must be in standard ASCII code.

10. Transmitter has one TCC, but is filing for multiple companies.
Which TIN should be used when logging into the FIRE system to send
the file?

When sending the file
electronically, enter the TIN of the company assigned to the TCC.

11. Transmitter sent the wrong file, what should be done?

Call IRS
at 1-866-455-7438 or outside the U.S. at 1-304-263-8700. IRS may be
able to stop the file before it has been processed.

Part C. Record Format Specifications
and Record Layouts

Sec. 1. File Layout Diagram

Sec. 2. General

.01 The specifications contained
in this part of the Revenue Procedure define the required formation
and contents of the records to be included in the electronic files.

Sec. 3. Transmitter “T” Record

.01 The Transmitter “T”
Record identifies the entity preparing and transmitting the file.
The transmitter and the withholding agent may be the same, but they
need not be. The “T” Record contains information which
is critical if it is necessary for IRS to contact the filer.

.02 The first record of a
file must be a Transmitter “T” Record. The “T”
Record must appear on each electronic file; otherwise, a replacement
file will be requested.

.03 The “T” Record
is a fixed length of 820 positions.

.04 All alpha characters entered
in the “T” Record must be upper case.

Note

Note 1: For all fields marked
“Required,” the transmitter
must provide the information described under Description and Remarks.
If required fields are not completed in accordance with this Revenue
Procedure, IRS will contact the filer to request a replacement file.
For those fields not marked “Required,” a transmitter must allow for the field, but may be instructed
to enter blanks or zeros in the indicated field position(s) and for
the indicated length.

Note

Note 2: A copy of the current Instructions for Form 1042-S is included at the end of
this publication. These instructions must be used for the proper coding
of each field in this record where applicable. The instructions are
updated each year as required. Publication 1187 may not be revised
every year. Be sure to use the most current Instructions
for Form 1042-S when coding files.

Note

Note 3: The only valid characters
for electronic filing are alpha, numeric, blank, ampersand (&),
hyphen(-), comma (,), apostrophe (’), forward slash (/), pound
sign (#), period (.), and the percent (%). The percent [% (used as
“in care of”)] is valid in the first position only. Do
not use special characters that are unique to a language other than
English. Inclusion of any characters other than those identified as
valid in the instructions will result in a “Bad File”
status.

Record Name: Transmitter “T” Record

FieldPosition

Field Title

Length

Description and Remarks

1

Record Type

1

Required. Enter “T.”

2-5

Tax Year

4

Required. Enter the year for which income and withholding
are being reported.

6-14

Transmitter’s Taxpayer Identification
Number (TIN)

9

Required. Enter the Taxpayer Identification Number of
the Transmitter. This can be an Employer Identification Number (EIN),
Qualified Intermediary Number (QI-EIN), Withholding Partnership (WP-EIN),
or a Withholding Trust (WTEIN). Do not enter blanks, hyphens or alpha
characters.

15-54

Transmitter’s Name

40

Required. Enter the name of the transmitter
of the file. Abbreviate if necessary to fit the 40-character limit.
Omit punctuation, if possible. Left-justify the information and fill
unused positions with blanks.

Note: Do not use special characters in names or addresses
that are unique to a language other than English. For example: å
= A, æ = A, ű = U, Ǿ = O, ň = N, etc.

55-94

Transmitter’s Address

40

Required. Enter the full mailing address of the transmitter.
This includes the number, street, and apartment or suite number (P.O.
Box can be used if mail is not delivered to street address). Abbreviate
as needed to fit the 40-character limit. Omit punctuation, if possible.
Left-justify the information and fill unused positions with blanks.

95-114

City

20

Required. Enter the city or town (or other
locality name) of the transmitter. If applicable, enter APO or FPO
only. Left-justify the information and fill unused positions with
blanks.

115-116

State Code

2

Required if U.S. Transmitter. Enter only the
valid U.S. Postal Service State Code. Do not spell out the state name.
Refer to the State Code Table Part A, Sec. 14. If this field is not
utilized, enter blanks.

117-118

Province Code

2

Required if Foreign Country Code is “CA” (Canada). Enter only the two-alpha character Province Code as shown in the
Province Code table below. Do not spell out the Province Name. If
the foreign country is other than Canada, enter blanks.

Province Code

Province

Province Code

Province

AB

Alberta

NU

Nunavut

BC

British
Columbia

ON

Ontario

MB

Manitoba

PE

Prince Edward Island

NB

New Brunswick

QC

Quebec

NL

Newfoundland
& Labrador

SK

Saskatchewan

NS

Nova Scotia

YT

Yukon Territory

NT

Northwest Territories

119-120

Country Code

2

Required if Foreign Transmitter.If the Country Code is present, the State Code field must
be blank. Enter only the two-alpha Country Code from the
Country Code table. Do not spell out the Country Name.

Note: Country Codes: The list of country codes provided
in the current Instructions for Form 1042-S includes
all internationally recognized country codes and must be used to ensure
the proper coding of the Country Code field. This list is updated
each year as required. Do not enter U.S. in the Country Code field.

121-129

Postal or ZIP Code

9

Required. Enter up to nine numeric characters
for all U.S. addresses (including territories, possessions, and APO/FPO).
For foreign addresses enter the alphanumeric foreign postal code,
if applicable. Left-justify the information and fill unused positions
with blanks.

130-169

Contact Name

40

Required. Enter the name of the person to contact
if any questions should arise with the transmission. Left-justify
the information and fill unused positions with blanks.

170-189

Contact Telephone Number

20

Required. Enter the contact person’s
telephone number, and extension, if applicable. If foreign, provide
appropriate codes for international calls. Left-justify the information
and fill unused positions with blanks.

190-194

Transmitter Control Code (TCC)

5

Required. Enter the five-character alphanumeric
TCC assigned ONLY for Form 1042-S reporting. (The first two numbers
will always be 22.) Alpha characters must be upper case.

195-198

Test Indicator

4

Required if this is a test file. Enter the
word “TEST.” Otherwise, enter blanks.

199

Prior Year Indicator

1

Required. Enter a “P” only if reporting
prior year data; otherwise, enter blank. Do not enter a “P”
for current year information.

200-810

Reserved

611

Enter
blanks.

811-818

Record Sequence Number

8

Required. Enter the number of the record as
it appears within the file. The record sequence number for the “T”
Record will always be “1” (one), since it is the first
record on the file and there can only be one “T” Record
in a file. Each record, thereafter, must be incremental by one in
ascending numerical sequence, that is, 2, 3, 4, etc. Right-justify
numbers with leading zeroes in the field. For example, the “T”
Record sequence number would appear as “00000001” in the
field, the first “W” Record would be “00000002,”
the first “Q” Record, “00000003,” the second
“Q” Record, “00000004,” and so on until the
final record of the file, the “F” Record.

819-820

Blank or Carriage Return Line Feed

2

Enter
blanks or carriage return line feed (CR/LF) characters.

Transmitter “T” Record Layout

Record Type

Tax Year

Transmitter’s TIN

Transmitter’s Name

Transmitter’s Address

City

1

2-5

6-14

15-54

55-94

95-114

State Code

Province Code

Country Code

Postal or ZIP Code

Contact Name

Contact Telephone Number

115-116

117-118

119-120

121-129

130-169

170-189

TCC

Test Indicator

Prior Year Indicator

Reserved

Record Sequence Number

Blank or Carriage Return
Line Feed

190-194

195-198

199

200-810

811-818

819-820

Sec. 4. Withholding Agent “W”
Record

.01 The “W” Record
identifies the Withholding Agent.

.02 Enter a “W”
Record after the initial “T” Record on the file, followed
by the Recipient “Q” Record(s), and a Reconciliation “C”
Record. Do not report for a withholding agent if there are no corresponding
Recipient “Q” Records.

.03 Several “W”
Records for different Withholding Agents may appear on the same Transmitter’s
file.

.04 Each “W” Record
is a fixed length of 820 positions.

.05 All alpha characters entered
in the “W” Record must be uppercase.

Note

Note 1: For all fields marked “Required,” the transmitter must
provide the information described under Description and Remarks. If
required fields are not completed in accordance with this Revenue
Procedure, the file may not process correctly. For those fields not
marked “Required,” a
transmitter must allow for the field, but may be instructed to enter
blanks or zeros in the indicated field position(s) and for the indicated
length.

Note 2: A copy of the Instructions for Form 1042-S is included at the end of
this publication. These instructions must be used for the proper coding
of each field in this record, where applicable. The list of country
codes in the instructions includes all recognized country codes and
must be used for coding. The instructions are updated each year as
required. Publication 1187 may not be revised every year. Be sure
to use the most current Instructions for Form 1042-S when coding files.

Note 3: The only valid characters
for electronic filing are alpha, numeric, blank, ampersand (&),
hyphen (-), comma (,), apostrophe (’), forward slash (/), pound
sign (#), period (.), and the percent (%). The percent [% (used as
“in care of”)] is valid in the first position only. Do
not use special characters that are unique to a language other than
English. Inclusion of any characters other than those identified as
valid in the instructions will result in a “Bad File”
status.

Record Name: Withholding Agent “W” Record

Field Position

Field Title

Length

Description
and Remarks

1

Record Type

1

Required. Enter “W.”

2

Return Type Indicator

1

Required. Enter the one position value below
to identify whether the record is Original or Amended. If submitting
a replacement file, use the same indicator as the file being replaced
(for example, if replacing an amended file the indicator would be
1). Do not enter a blank or alpha character.

Acceptable
Values are:

0 (Zero)

=

Original

1

=

Amended

3

Pro Rata Basis Reporting

1

Required. Enter the one position value below to identify
if reporting on a Pro Rata Basis. Acceptable Values are:

Acceptable
Values are:

0 (Zero)

=

Not Pro Rata

1

=

Pro Rata Basis Reporting

4-12

Withholding Agent’s EIN

9

Required. Enter the nine-digit Employer Identification
Number of the Withholding Agent. Do not enter blanks, hyphens or alpha
characters. An EIN consisting of all the same digits (for example,
111111111) is not acceptable. Do not enter the recipient’s TIN
in this field.

Note: See the Instructions for Form 1042-S to determine when a Qualified Intermediary, Withholding Foreign
Partnership, or Withholding Foreign Trust must provide its QI-EIN,
WP-EIN or WT-EIN in this field.

13

Withholding Agent’s EIN Indicator

1

Required. Enter the Withholding Agent’s
EIN indicator from the following values:

0

=

EIN

1

=

QI-EIN, WP-EIN, WT-EIN

2

=

NQI-EIN

Note: Use EIN indicator 1 only if the Withholding Agent’s
EIN begins with “98” AND the Withholding
Agent, Withholding Trust, or Withholding Partnership has entered into
a withholding agreement with the IRS.

14-53

Withholding Agent’s Name Line-1

40

Required. Enter the Withholding Agent’s
Name as established when filing for the EIN or QI-EIN which appears
in positions 4-12 of the “W” Record. Left-justify the
information and fill unused positions with blanks.

Note: Do not use special characters in names or addresses
that are unique to a language other than English. For example: å
= A, æ = A, ű = U, Ǿ = O, ň = N, etc.

54-93

Withholding Agent’s Name Line-2

40

Enter
supplementary withholding agent’s name information; otherwise,
enter blanks. Use this line for additional names (for example, partners
or joint owners), for trade names, stage names, aliases, or titles.
Also use this line for “in care of” or “via.”
Left-justify the information and fill unused positions with blanks.
See Note 3 at the beginning of the
“W” Record.

94-133

Withholding Agent’s Name Line-3

40

See
the description for Withholding Agent’s Name Line-2.

134-173

Withholding Agent’s Street Line-1

40

Required. Enter the mailing address of the
withholding agent. The street address should include the number, street,
and apartment or suite number (or P.O. Box if mail is not delivered
to a street address). Abbreviate as needed. Left-justify the information
and fill unused positions with blanks.

Required. Enter the city or town
(or other locality name). Enter APO or FPO only if applicable. Do
not enter a foreign postal code in the city field. Left-justify the
information and fill unused positions with blanks.

254-255

Withholding Agent’s State Code

2

Required if Withholding Agent has a U.S. address. Enter the valid U.S. Postal Service state code. If not using a U.S.
state, territory, or APO/FPO identifiers, enter blanks. Do not use
any of the two character Country Codes in the State Code Field.

Note: If the withholding agent has a U.S. address, leave
the country code in positions 258-259 blank.

256-257

Withholding Agent’s Province Code

2

Required if Foreign Country Code is “CA”
(Canada). Enter only the two-alpha character Province Code
as shown in the Province Code Table. See the “T” record
positions 117-118 for the Province Code Table. Do not spell out the
Province Name. If the foreign country is other than Canada, enter
blanks.

258-259

Withholding Agent’s Country Code

2

Required if QI or NQI or other foreign withholding
agent. Enter only the two-alpha Country Code from the Country
Code Table. Do not spell out the Country Name.

Note: COUNTRY CODES: The list of country codes
provided in the current Instructions for Form 1042-S includes all internationally recognized country codes and MUST be
used to ensure the proper coding of the Country Code field. This list
is updated each year as required. Do not enter U.S. in the Country
Code field.

260-268

Postal or ZIP Code

9

Required. Enter up to nine numeric characters
for all U.S. addresses (including territories, possessions, and APO/FPO).
For foreign addresses enter the alphanumeric foreign postal code,
if applicable. Left-justify the information and fill unused positions
with blanks.

269-272

Tax Year

4

Required. Enter the four-digit current tax
year, unless a “P” was entered in the Prior Year Indicator
Field of the “T” Record. All recipient “Q”
Records must be a report of payments for one year only. Different
tax years may not appear on the same file.

273-317

Withholding Agent Contact Name

45

Required. Enter the name of the person the
IRS can contact if questions arise concerning this filing. Left-justify
the information and fill unused positions with blanks.

318-362

Withholding Agent’s Department Title

45

Required. Enter the title of the contact person
or the department that can answer inquiries concerning this filing.
Left-justify the information and fill unused positions with blanks.

363-382

Contact Telephone Number and Extension

20

Required. Enter the telephone number of a person
to contact regarding electronic files. Omit hyphens. If no extension
is available, left-justify the information and fill unused positions
with blanks. If foreign, provide the appropriate code(s) for international
calls.

383

Final Return Indicator

1

Required. Enter the one position value below
to indicate whether Forms 1042-S will be filed in the future.

0 (Zero)

=

will be filing

1

=

will not be filing

384-809

Reserved

426

Enter
blanks.

810

Amended Return Indicator

1

Required
for amended returns only. Enter the appropriate code:

Code

Definition

G

A one-step transaction amended return or the first of a two-step
transaction amended return

C

The second transaction of a two-step transaction amended return

Blank

If this is not a return being submitted to amend information already
processed by IRS

Note: Amended C and G coded records must be
reported using separate Payer “W” Records. Refer to Part
A, Sec. 9, for specific instructions on how to file amended returns.

Non-coded
records cannot be submitted in an Amended file.

811-818

Record Sequence Number

8

Required. Enter the number of the record as
it appears within the file. The record sequence number for the “T”
Record will always be “1” (one), since it is the first
record on the file and there can be only one “T” Record
in a file. Each record, thereafter, must be incremental by one in
ascending numerical sequence, that is, 2, 3, 4, etc. Right-justify
numbers with leading zeros in the field. For example, the “T”
Record sequence number would appear as “00000001” in the
field, the first “W” Record would be “00000002,”
the first “Q” Record, “00000003,” the second
“Q” Record, “00000004,” and so on until the
final record of the file, the “F” Record.

819-820

Blank or Carriage Return Line Feed

2

Enter blanks
or carriage return line feed (CR/LF) characters.

Withholding Agent “W” Record
Layout

Record Type

Return Type Indicator

Pro Rata Basis Reporting

Withholding Agent’s
EIN

Withholding Agent’s
EIN Indicator

Withholding Agent’s
Name Line-1

Withholding Agent’s
Name Line-2

1

2

3

4-12

13

14-53

54-93

Withholding Agent’s
Name Line-3

Withholding Agent’s
Street Line-1

Withholding Agent’s
Street Line-2

Withholding Agent’s
City

Withholding Agent’s
State Code

Withholding Agent’s
Province Code

Withholding Agent’s
Country Code

94-133

134-173

174-213

214-253

254-255

256-257

258-259

Postal or ZIP Code

Tax Year

Withholding Agent Contact
Name

Withholding Agent’s
Department Title

Contact Telephone Number
and Extension

Final Return Indicator

Reserved

260-268

269-272

273-317

318-362

363-382

383

384-809

Amended Return Indicator

Record Sequence Number

Blank or Carriage Return
Line Feed

810

811-818

819-820

Sec. 5. Recipient “Q” Record

.01 The “Q” Record
contains name and address information for the Recipient of Income,
Non-Qualified Intermediary or Flow-Through Entity, Payer, and all
data concerning the income paid and tax withheld that is required
to be reported under U.S. law. Each Recipient “Q” Record
is treated as if it were a separate Form 1042-S.

.02 The “Q” Record
is restricted to one type of income, one type of exemption code, and
one tax rate. Under certain circumstances, it may be necessary to
submit more than one “Q” Record for the same recipient.
Failure to provide multiple Recipient “Q” Records when
necessary may generate math computation errors during processing.
This will result in IRS contacting you for correct information.

.03 Following are some of
the circumstances when more than one “Q” Record for a
recipient would be required:

Different types of income. For example, Recipient X derived
income from Capital Gains (Income Code 09) and Industrial Royalties
(Income Code 10). A separate “Q” Record must be reported
for each Income Code. Each “Q” Record must reflect the
Gross Income Paid and any U.S. Federal Tax withheld by the withholding
agent(s) pertaining to that Income Code.

Change in Country Code during the year. For example, the Withholding
Agent received notification by Form W-8BEN that the recipient’s
country of residence for tax purposes changed from country X to country
Y. A separate “Q” Record must be reported for each Country
Code providing Gross Income Paid, Tax Rate, any U.S. Federal Tax Withheld
by the withholding agent(s), and Exemption Code, if any. The amounts
reported must be based on each country.

Change in a country’s tax treaty rate during the year.
For example, effective April 1, country X changes its tax treaty rate
from ten percent to twenty percent. A separate “Q” Record
must be reported for each of the tax rates. Provide the Gross Income
Paid, Tax Rate, and any U.S. Federal Tax Withheld by the withholding
agent(s) under each tax rate.

.04 All recipient “Q”
Records for a particular Withholding Agent must be written after the
corresponding Withholding Agent “W” Record, followed by
a Reconciliation “C” Record, and before the “W”
Record for another Withholding Agent begins.

.05 All alpha characters entered
in the “Q” Record must be upper case.

.06 The “Q” Record
is a fixed length of 820 positions.

.07 Report income and tax withheld
in whole dollars only. Round up or down as appropriate. To round off
amounts to the nearest whole dollar, drop amounts under 50 cents and
increase amounts of 50 to 99 cents to the next whole dollar. If there
are two or more amounts to add together, figure the amount to be reported
by including cents when adding and only round off the total figure
to be reported. Do not enter cents.

Note

Note 1: For all fields marked
“Required,” the transmitter
must provide the information described under Description and Remarks.
If required fields are not completed in accordance with this Revenue
Procedure, the file will not process correctly. IRS will contact the
filer to request a replacement file. For those fields not marked “Required,” a transmitter must allow for
the field, but may be instructed to enter blanks or zeros in the indicated
field position(s) and for the indicated length.

Note

Note 2: A copy of the Instructions for Form 1042-S is included at the end of
this publication. These instructions must be used for the proper coding
of each field in this record where applicable. The list of country
codes in the instructions includes all recognized country codes and
must be used for coding. The instructions are updated each year as
required. Publication 1187 may not be revised every year. Be sure
to use the most current Instructions for Form 1042-S for coding files.

Note

Note 3: The only valid characters
for electronic filing are alpha, numeric, blank, ampersand (&),
hyphen (-), comma (,), apostrophe (’), forward slash (/), pound
sign (#), period (.), and the percent (%). The percent [% (used as
“in care of”)] is valid in the first position only. Do
not use special characters that are unique to a language other than
English. Inclusion of any characters other than those identified
as valid in the instructions will result in a “Bad File”
status.

Record
Name: Recipient “Q” Record

Field Positions

Field Title

Length

Description and Remarks

1

Record Type

1

Required. Enter “Q.”

2

Return Type Indicator

1

Required. Enter the one position value below to identify
whether the record is Original or Amended. If submitting a replacement
file, use the same indicator as the file being replaced (for example,
if replacing an amended file, the indicator would be 1). This must
be the same value as in the “W” Record. Values are:0
(Zero) = Original 1 = Amended

3

Pro Rata Basis Reporting

1

Required. Enter the one position value below to identify
whether reporting on a Pro Rata Basis. This must be the same value
as in the “W” Record. Values are: 0 (Zero)
= Not Pro Rata 1 = Pro Rata Basis Reporting

4-5

Income Code

2

Required. Enter the two-position value EXACTLY
as it appears from the income code table. The Income Code must accurately
reflect the type of income paid. Do not enter blanks or 00 (zeros).

Note: Refer to the Instructions for Form 1042-S for more information.

6-17

Gross Income

12

Required. Enter the gross income amount in
whole dollars only, rounding to the nearest dollar (do not enter cents).
For example, report $600.75 as 000000000601. An income amount of zero
cannot be shown. Only amended returns can report zero amounts. Numeric
characters only, right-justify information and fill unused positions
with zeros.

Note: Do not report negative amounts in any amount field.

18-29

Withholding Allowance

12

Used with Income Codes 15, 16, 17, 18, 19, 42, or 43 only. Enter the withholding allowance amount in whole dollars only, rounding
to the nearest dollar (do not enter cents). Numeric characters only,
right-justify the information and fill unused positions with zeros.
If this field is not used enter blanks.

30-41

Net Income

12

Required if a Dollar Amount is Entered in the Withholding Allowance
Field. Enter the net income in whole dollars only, rounding
to the nearest dollar (do not enter cents). An amount other than zero must be shown. Numeric characters only, right-justify
the information and fill unused positions with zeros. If this field
is not utilized, enter blanks.

42-45

Tax rate

4

Required. Enter the correct Tax Rate applicable to the
income in the gross income field or net income field, as appropriate.
Enter the Tax Rate as a two-digit whole number and two-digit decimal
(for example, enter 27.50% as 2750, 15% as 1500 or 7% as 0700). See Note below.

Note: The correct Tax Rate must be entered, even if withholding
was at a lesser rate. See the current Instructions for
Form 1042-S.

46-47

Exemption Code

2

Required. Read Carefully. •
If the tax rate entered is 0%, enter the appropriate exemption code
“01” through “10” from the Instructions
for Form 1042-S. • If the tax rate
entered is 1% through 30%, enter “00.” •
If the tax rate entered is greater than 30%, blank fill. Do not enter
“00.” See the current Instructions
for Form 1042-S for circumstances under which Exemption
Code “99” must be used.

Note: If an incorrect amount of tax was withheld, report
the amount that was actually withheld and use the correct tax rate
in field positions 42-45.

48-49

Recipient’s Country of Residence Code for
Tax Purposes

2

Required. Enter the two-character Country Code
for which the recipient is a resident for tax purposes and on which
the tax treaty benefits are based, whether applying a tax treaty benefit
to this payment or not. The rate of tax withheld is determined by
this code.

Note: Do not enter U.S. in the Country Code field. Enter
“OC” (other country) only when the
country of residence does not appear on the list or the payment is
made to an international organization. If making a payment to a QI
or QI withholding rate pool, enter the country code of the QI.

50-59

Reserved

10

Enter blanks.

60-71

Amount Repaid

12

This field should
be completed only if: a recipient was repaid an amount that was over-withheld
and the withholding agent is going to be reimbursed by reducing, by
the amount of tax actually repaid, the amount of any deposit made
for a payment period in the calendar year following the calendar year
of withholding. Otherwise, enter zeros.

72-91

Recipient Account Number

20

Enter the account
number assigned by the withholding agent to the recipient. Do not
enter the recipient’s U.S. or foreign TIN. If an account number
is not assigned, enter blanks. This field may contain numeric characters,
alpha characters, blanks, or hyphens. Left-justify the information
and fill unused positions with blanks.

92-93

Recipient Code

2

Required. Enter the appropriate Recipient Code.
Refer to the list of appropriate codes in the current paper Instructions
for Form 1042-S. No other codes or values are valid.

Note: If recipient code “20” is used, the
Recipient’s Name Line-1 must be “UNKNOWN” or “UNKNOWN
RECIPIENT” and the Recipient’s Name Lines 2 and 3 must
be BLANK. The tax rate must be 30%.

94-133

Recipient’s Name Line-1

40

Required. Provide the complete name of the
recipient. If the recipient has a U.S. TIN, enter the name as established
when applying for the TIN. If recipient code “20” is used,
enter “UNKNOWN” or “UNKNOWN RECIPIENT.” Recipient’s
Name Lines 2 and 3 must be blank. See the Instructions for
Form 1042-S for specific information about “UNKNOWN
RECIPIENTs” and “WITHHOLDING RATE POOLs” See Note 3 at the beginning of the “Q”
Record

Note 1: A Non-Qualified Intermediary (NQI)
can NEVER be entered as the recipient.

Note 2: Do not use special characters in names or addresses
that are unique to a language other than English. For example: å
= A, æ = A, u = U, Ǿ= O, ň = N, etc.

134-173

Recipient’s Name Line-2

40

Enter supplementary
recipient name information including titles; otherwise, enter blanks.
Use this line for additional names (for example, partners or joint
owners), for trade names, stage names, aliases or titles. Also use
this line for “in care of,” “Attn,” or “via”.
See Note 3 at the beginning of the
“Q” Record.

174-213

Recipient’s Name Line-3

40

See the description
for Recipient’s Name Line-2.

214-253

Recipient’s Street Line-1

40

Required. Enter the mailing address of the recipient.
The street address should include the number, street, apartment, or
suite number (or P.O. Box if mail is not delivered to a street address).
Abbreviate as needed. Left-justify the information and fill unused
positions with blanks. See Note 3 at the beginning of the “Q” Record.

254-293

Recipient’s Street Line-2

40

Enter supplementary
recipient street address information. If a P.O. Box is used in addition
to a street address, enter it here. Left-justify the information and
fill unused positions with blanks.

294-333

Recipient’s City

40

Required. Enter the city or town (or other locality name).
Enter the APO or FPO only, if applicable. Do not enter a foreign postal
code in the city field. Left-justify the information and fill unused
positions with blanks.

334-335

Recipient’s State

2

Required if U.S. address. Enter the two-character
State Code abbreviation. If no U.S. state, territory, or APO/FPO identifier
is applicable, enter blanks. Do not use any of the two character Country
Codes in the State Code Field.

Note: If the recipient has a U.S. address, leave the province
code in positions 336-337 and country code in positions 338-339 blank.

336-337

Recipient’s Province Code

2

Required if the Recipient Country Code in positions 338-339 is “CA.” Enter only the two-alpha character Province Code as shown in the
Province Code Table below. Do not spell out the Province Name. If
the foreign country is other than Canada, enter blanks.

Province Code

Province

Province Code

Province

AB

Alberta

NU

Nunavut

BC

British
Columbia

ON

Ontario

MB

Manitoba

PE

Prince Edward Island

NB

New Brunswick

QC

Quebec

NL

Newfoundland
& Labrador

SK

Saskatchewan

NS

Nova Scotia

YT

Yukon Territory

NT

Northwest
Territories

338-339

Recipient’s Country Code

2

Required if the recipient has a foreign address. Enter the two-character Country Code abbreviation. See the Instructions for Form 1042-S for the appropriate codes.

Note 1: If the state code is entered in positions
334-335, leave this field blank.

Note 2: COUNTRY CODES: The list of country
codes provided in the current Instructions for Form 1042-S includes all internationally recognized country codes and must be
used to ensure the proper coding of the Country Code field. This list
is updated each year as required. If making a payment to a QI, enter
the country code of the QI.

Note 3: Enter “UC” (unknown country) only if the payment is to an unknown recipient.

340-348

Postal or ZIP Code

9

Required. Enter up to nine numeric
characters for all U.S. addresses (including territories, possessions,
and APO/FPO). For foreign addresses enter the alphanumeric foreign
postal code, if applicable. Left justify the information and fill
unused positions with blanks.

349-357

Recipient’s U.S. TIN

9

Enter the recipient’s nine-digit U.S. Taxpayer Identification
Number (TIN). Do not enter hyphens, alpha characters, or TINS consisting
of all the same digits (for example, 111111111 or 999999999) as these
are not valid TINs. If a TIN is not required under regulations, or
is required but has not been provided by the recipient, enter blanks.

Note: U.S. TINs are now required for most recipients.
See the Instructions for Form 1042-S.

Note: Use EIN indicator 3 only if the Withholding Agent’s
EIN begins with “98” and the Withholding
Agent, Withholding Trust, or Withholding Partnership has entered into
a withholding agreement with the IRS.

359-370

U. S. Federal Tax Withheld

12

Required. Enter U.S. Federal tax
withheld by the withholding agent. Enter the amount in whole dollars,
rounding to the nearest dollar (do not enter cents). For example,
report $600.25 as 000000000600. Numeric characters only, right-justify
the information and fill unused positions with zeros. If there was
no withholding, enter all zeros.

371-382

Withholding By Other Agents

12

Required. For withholding
agents reporting Form 1042-S information that has already been subject
to withholding by another withholding agent, enter the amount withheld
by the other agent. Enter the amount in whole dollars, rounding to
the nearest dollar (do not enter cents). For example, report $600.25
as 000000000600. Numeric characters only, right-justify the information
and fill unused positions with zeros. If there was no withholding,
enter all zeros.

Note: If claiming a credit on Form 1042 (line 66) because
of withholding by other agents, attach a copy of the Form 1042-S
to Form 1042 to support the credit. For additional guidance, please
review the Instructions for Form 1042.

383-394

Total Withholding Credit

12

Required. Enter the aggregate
amount of U.S. Federal tax withheld by you and any other withholding
agent. Enter the amount in whole dollars, rounding to the nearest
dollar (do not enter cents). For example, report $600.25 as 000000000600.
Numeric characters only, right-justify the information and fill unused
positions with zeros. If there was no withholding, enter all zeros.

Note: If the Total Withholding Credit, (aggregate
amounts of U.S. Federal Tax Withheld and Withholding By Other Agents)
was either under or over reported, see Field Position 761 of the “Q”
Record.

395-400

Reserved

6

Enter blanks.

401-440

NQI/FLW-THR/PTP Name Line-1

40

Provide the complete name of the NQI/FLW-THR or PTP Entity.
It is very important that the complete name of the NQI/FLW-THR or
PTP entity be provided. Left-justify the information and fill unused
positions with blanks. See Note 3 at the beginning of the “Q”
Record.

Note 1: A nominee that is the withholding agent
under Code Section 1446 must enter the Publicly Traded Partnership’s
(PTP) name and other information in the NQI/FLW-THR fields; positions
401-666.

Note 2: All NQI/FLW-THR fields are REQUIRED if the NQI/FLW-THR
entity is involved in the payment structure, EXCEPT FOR THE NQI/FLW-THR
TIN.

441-480

NQI/FLW-THR/PTP Name Line-2

40

Enter supplementary information; otherwise, enter blanks. Use this
line for additional names (for example, partners or joint owners),
for trade names, stage names, aliases, or titles. Also use this line
for “in care of” or “via”. See Note 3 at the beginning of the “Q”
Record.

481-520

NQI/FLW-THR/PTP Name Line-3

40

See the description for NQI/FLW-THR/PTP Name Line-2.

521-522

Reserved

2

Enter blanks.

523-562

NQI/FLW-THR/PTP Street Line-1

40

Enter the mailing address of the NQI/FLW-THR or PTP entity. The street
address should include the number, street, apartment, or suite number
(or P.O. Box if mail is not delivered to street address). Abbreviate
as needed. Left-justify the information and fill unused positions
with blanks.

Enter the city or town (or other locality name). Left-justify the
information and fill unused positions with blanks.

643-644

NQI/FLW-THR/PTP State Code

2

Enter the two-alpha character state code (see table Part A, Sec.
14). If a state code or APO/FPO is not applicable, enter blanks.

645-646

NQI/FLW-THR/PTP Province Code

2

Enter the two-alpha character Province Code abbreviation, if applicable.
See “T” Record positions 117-118.

647-648

NQI/FLW-THR/PTP Country Code

2

Enter the two-character Country Code abbreviation, where the NQI/FLW-THR
or PTP is located. If the NQI/FLW-THR or PTP has a U.S. address, enter
blanks.

649-657

NQI/FLW-THR/PTP Postal Code or ZIP Code

9

Enter the alphanumeric foreign postal code or U.S. ZIP Code for all
U.S. addresses including territories, possessions, and APO/FPO. Enter
the code in the left most position and blank fill the remaining positions.

658-666

NQI/FLW-THR/PTP U.S. TIN

9

Enter the NQI/FLW-THR or PTP nine-digit U.S. Taxpayer Identification
Number (TIN), if any. Do not enter hyphens or alpha characters.

667-706

Payer’s Name

40

Enter the name of the Payer of Income if different from the Withholding
Agent. Abbreviate as needed. If the Withholding Agent and Payer are
the same, enter blanks.

707-715

Payer’s U.S. TIN

9

Enter the Payer’s U.S. Taxpayer Identification Number if there
is an entry in the Payer Name Field; otherwise, enter blanks.

716-727

State Income Tax Withheld

12

If State Tax has been withheld, enter that amount in whole
dollars (do not enter cents). Right-justify the information and fill
unused positions with zeros. If this field is not utilized, enter
zeros.

Note: This amount is not included in the U.S.
Federal Tax fields.

728-737

Payer’s State Tax Number

10

Enter the employer state I.D. number if assigned by the state. Left-justify
the information and fill unused positions with blanks.

738-739

Payer’s State Code

2

Enter the two-character State Code abbreviation.

740-760

Special Data Entries

21

This field may be used for the filer’s own purposes. If this
field is not utilized, enter blanks.

761

U.S. Federal Tax Withheld Indicator

1

Required. Indicate if the U.S.
Federal tax withheld was correct or incorrect using the following
values: • 0 = Correctly reported •
1 = Over withheld • 2 = Under withheld

Note : Please refer to Total withholding Credit positions
383-394.

762-783

Recipient’s Foreign Tax I.D. Number

22

Enter the recipient’s identifying number. Use only characters
listed in Note 3. Left-justify the information and fill unused positions
with blanks.

784-809

Reserved

26

Enter blanks.

810

Amended Return Indicator

1

Required
for amended returns only. Enter the appropriate code:

Code

Definition

G

A one-step
transaction amended return or the first of a two-step transaction
amended return

C

The
second transaction of a two-step transaction amended return

Blank

If this is not
a return being submitted to amend information already processed by
IRS

Note: Amended C and G coded records must be
reported using separate Payer “W” Records. Refer to Part
A, Sec. 9, for specific instructions on how to file amended returns.
Non-coded records cannot be submitted in Amended files.

811-818

Record Sequence Number

8

Required. Enter the number of the
record as it appears within the file. The record sequence number for
the “T” Record will always be “1” (one), since
it is the first record on the file and there can only be one “T”
Record in a file. Each record, thereafter, must be incremental by
one in ascending numerical sequence, that is, 2, 3, 4, etc. Right-justify
numbers with leading zeros in the field. For example, the “T”
Record sequence number would appear as “00000001” in the
field, the first “W” Record would be “00000002,”
the first “Q” Record, “00000003,” the second
“Q” Record, “00000004,” and so on until the
final record of the file, the “F” Record.

819-820

Blank or Carriage Return Line Feed

2

Enter blanks or carriage return line feed (CR/LF) characters.

Recipient “Q” Record Layout

Record Type

Return type Indicator

Pro rata Basis Reporting

Income Code

Gross Income

Withholding Allowance

Net Income

1

2

3

4-5

6-17

18-29

30-41

Tax Rate

Exemption Code

Recipient’s Country
of Residence Code for Tax Purposes

Reserved

Amount Repaid

Recipient Account Number

Recipient Code

42-45

46-47

48-49

50-59

60-71

72-91

92-93

Recipient’s Name
Line-1

Recipient’s Name
Line-2

Recipient’s Name
Line-3

Recipient’s Street
Line-1

Recipient’s Street
Line-2

Recipient’s City

Recipient’s State

94-133

134-173

174-213

214-253

254-293

294-333

334-335

Recipient’s Province
Code

Recipient’s Country
Code

Postal or ZIP Code

Recipient’s U.S.
TIN

Recipient’s U.S.
TIN Type

U.S. Federal Tax Withheld

Withholding By Other Agents

336-337

338-339

340-348

349-357

358

359-370

371-382

Total Withholding Credit

Reserved

NQI/FLW-THR/PTP Name Line-1

NQI/FLW-THR/PTP Name Line-2

NQI/FLW-THR/PTP Name Line-3

Reserved

NQI/FLW-THR/PTP Street
Line-1

383-394

395-400

401-440

441-480

481-520

521-522

523-562

NQI/FLW-THR/PTP Street
Line-2

NQI/FLW-THR/PTP City

NQI/FLW-THR/PTP State
Code

NQI/FLW-THR/PTP Province
Code

NQI/FLW-THR/PTP Country
Code

NQI/FLW-THR/PTP Postal
Code or ZIP Code

NQI/FLW-THR/PTP U.S. TIN

563-602

603-642

643-644

645-646

647-648

649-657

658-666

Payer’s Name

Payer’s U.S. TIN

State Income Tax Withheld

Payer’s State Tax
Number

Payer’s State Code

Special Data Entries

U.S. Tax Federal Withheld
Indicator

667-706

707-715

716-727

728-737

738-739

740-760

761

Recipient’s Foreign
Tax I.D. Number

Reserved

Amended Return Indicator

Record Sequence Number

Blank or Carriage Return
Line Feed

762-783

784-809

810

811-818

819-820

Sec. 6. Reconciliation “C”
Record

.01 The “C” Record
is a fixed record length of 820 positions and all positions listed
are required. The “C” Record is a summary of the number
of “Q” Records for each Withholding Agent, Gross Amount
Paid, and Total Withholding Credit.

.02 This record will be written
after the last “Q” Record filed for a given withholding
agent. For each “W” Record and group of “Q”
Records on the file, there must be a corresponding “C”
Record.

.03 All alpha characters entered
in the “C” Record must be upper case.

Record Name: Reconciliation “C” Record

Field Positions

Field Title

Length

Description
and Remarks

1

Record Type

1

Required. Enter “C.”

2-9

Total “Q” records

8

Required. Enter the total number of “Q” Records for this withholding
agent. Do not enter all zeros. For example, 53 “Q” Records
are entered as 00000053. See Part A, Sec. 4, Filing and Retention
Requirements. Right-justify the information and fill unused positions
with zeros.

10-15

Blank

6

Enter blanks.

16-30

Total Gross Amount Paid

15

Required. Enter the total gross income amount in whole dollars (do not enter
cents). For example report $600.00 as 000000000000600. An income amount
other than zero must be shown. Right-justify the information and fill
unused positions with zeros.

31-45

Total Withholding Credit

15

Required. Enter the total aggregate amount of tax withheld by you and any
other withholding agent. This is the aggregate total amount from the
U.S. Federal Tax Withheld and Withholding By Other Agents fields.
Enter the amount in whole dollars (do not enter cents). For example
report $600.00 as 000000000000600. Right-justify the information and
fill unused positions with zeros.

46-810

Reserved

765

Enter blanks.

811-818

Record Sequence Number

8

Required. Enter the number of the record as it appears within the file. The
record sequence number for the “T” Record will always
be “1” (one), since it is the first record on the file
and there can only be one “T” Record in a file. Each record,
thereafter, must be incremental by one in ascending numerical sequence,
that is, 2, 3, 4, etc. Right-justify numbers with leading zeros in
the field. For example, the “T” Record sequence number
would appear as “00000001” in the field, the first “W”
Record would be “00000002,” the first “Q”
Record, “00000003,” the second “Q” Record,
“00000004,” and so on until the final record of the file,
the “F” Record.

819-820

Blank or Carriage Return Line Feed

2

Enter blanks or carriage return
line feed (CR/LF) characters.

Reconciliation “C”
Record Layout

Record Type

Total “Q”
Records

Blank

Total Gross Amount Paid

Total WithholdingCredit

Reserved

Record Sequence Number

1

2-9

10-15

16-30

31-45

46-810

811-818

Blank or Carriage Return
Line Feed

819-820

Sec. 7. End of Transmission “F”
Record

.01 The “F” Record
is a fixed record length of 820 positions and all positions listed
are required. The “F” Record is a summary of the number
of withholding agents in the entire file.

.02 This record will be written
after the last “C” Record of the entire file. End the
file with an End of Transmission “F” Record. No data will
be read after the “F” Record. Only a “C” Record
may precede the “F” Record.

.03 All alpha characters entered
in the “F” Record must be upper case.

Record Name: End of Transmission “F” Record

Field Positions

Field Title

Length

Description
and Remarks

1

Record Type

1

Required. Enter “F.”

2-4

Withholding Agent Count

3

Required. Enter the total number of withholding agents on this file. This
count must be the same as the total number of “W” Records.
Right-justify the information and fill unused positions with zeros.

5-810

Reserved

806

Enter blanks.

811-818

Record Sequence Number

8

Required. Enter the number of the record as it appears within the file. The
record sequence number for the “T” Record will always
be “1” (one), since it is the first record on the file
and there can only be one “T” Record in a file. Each record,
thereafter, must be incremental by one in ascending numerical sequence,
that is, 2, 3, 4, etc. Right-justify numbers with leading zeros in
the field. For example, the “T” Record sequence number
would appear as “00000001” in the field, the first “W”
Record would be “00000002,” the first “Q”
Record, “00000003,” the second “Q” Record,
“00000004,” and so on until the final record of the file,
the “F” Record.

819-820

Blank or Carriage Return Line Feed

2

Enter blanks or carriage return
line feed (CR/LF) characters.

End of Transmission “F”
Record Layout

Record Type

Withholding Agent Count

Reserved

Record Sequence Number

Blank or Carriage Return
Line Feed

1

2-4

5-810

811-818

819-820

Part D. Extensions of Time and Waivers

Sec. 1. General - Extensions

.01 Withholding agents can
get an automatic 30-day extension of time to file by completing Form
8809, Application for Extension of Time to File Information
Returns. In addition, a request for an extension of time
can be submitted in an electronic file or online through the Filing
Information Returns Electronically (FIRE) system.

Note

Note: IRS encourages the withholding
agent/transmitter community to use the online fill-in form in lieu
of the paper Form 8809. A transmitter control code (TCC) is not required
to use the online fill-in form option.

.02 To complete the fill-in
Form 8809 online on the FIRE system, (See Part B, Sec. 7, for instructions
on connecting to the FIRE system.) at the Main Menu, click “Extension
of Time Request” and then click “Fill-in Extension Form.”
This option is only used to request an automatic 30-day extension.
Extension requests completed online through the FIRE system receive
an instant response if completed properly and timely.

.03 A paper Form 8809 may
be submitted to IRS at the address listed in .08 of this section.
This form may be used to request an extension of time to file information
returns submitted on paper or filed electronically. A separate form
must be completed for each withholding agent. Form 8809 may be computer
generated or photocopied. Be sure to use the most recently updated
version and include all the pertinent information.

.04 To be considered, an extension
request must be postmarked, transmitted or completed online by the
due date of the returns; otherwise, the request will be denied. (See
Part A, Sec. 7, for due dates.) If requesting an extension of time
to file several types of forms, use one Form 8809; however, Form 8809
or an extension file must be submitted no later than the earliest
due date. For example, if requesting an extension of time to file
both Forms 1099-INT and 1042-S, submit Form 8809 on or before February
28 (or March 15 if filing the returns electronically). A signature
and a reason for the request are not required when requesting an automatic
30-day extension.

.05 As soon as it is apparent
that a 30-day extension of time to file is needed, an extension request
should be submitted. Request an extension for the current tax year
only. IRS does not begin processing extension requests until January.
It may take up to 30 days for IRS to respond to a paper extension
request. Extensions completed online through the FIRE system receive
instant results.

.06 Under certain circumstances,
a request for an extension of time may be denied. When a denial letter
is received, any additional or necessary information must be resubmitted
within twenty days of the date of the letter.

.07 Requesting an extension
of time for multiple withholding agents should be done by completing
the online fill-in form or in an electronic file (see Sect. 3 for
the record layout) through the FIRE system. A separate Form 8809 must
be completed online for each withholding agent when using the fill-in
form option.

.08 All requests for an extension
of time filed on paper Forms 8809 must be sent using the following
address:

Internal Revenue Service

Information Returns Branch

Attn: Extension of Time
Coordinator

240 Murall Drive, Mail Stop 4360

Kearneysville, WV 25430

Note

Note: Due to the large volume
of mail received by IRS and the time factor involved in processing
Extension of Time (EOT) requests, it is imperative that the attention
line be present on all envelopes or packages containing Form 8809.

.09 Requests for extensions
of time to file postmarked by the United States Postal Service on
or before the due date of the returns, and delivered by United States
mail to IRS after the due date, are treated as timely under the “timely
mailing as timely filing” rule. A similar rule applies to designated
private delivery services (PDSs). Notice 97-26, 1997-17 I.R.B. 6,
provides rules for determining the date that is treated as the postmark
date. For items delivered by a non-designated Private Delivery Service
(PDS), the actual date of receipt by IRS will be used as the filing
date. For items delivered by a designated PDS, but through a type
of service not designated in Notice 2004-83, 2004-52 I.R.B. 1030 the
actual date of receipt by IRS will be used as the filing date. The
timely mailing rule also applies to furnishing statements to recipients
and participants.

. 10 Transmitters requesting
an extension of time with an electronic file will receive the file
status results online. If the extension requests are denied, the transmitters
will receive a denial letter accompanied by a list of withholding
agents covered under that denial.

.11 If an extension request
is approved, the approval notification should be kept on file. Do
not send the approval notification or copy of the approval notification
to IRS or to the service center where the paper returns are filed.
(An exception to this rule is: When filing Form 8027 on
paper only, attach a copy of the approval letter. If an approval letter
has not been received, attach a copy of the timely filed Form 8809.)

.12 If an additional extension
of time is needed, a Form 8809 and/or extension file must be sent
by the initial extended due date. Check the box on the form to indicate
that an additional extension is being requested. Failure to properly
complete and sign Form 8809 may cause delays in processing the request
or result in a denial. Carefully read and follow the instructions
on the back of Form 8809. Be sure to include the reason an additional
extension is needed. If requesting a second 30-day extension of time,
submit the information return files as soon as prepared. Do not wait
for the IRS response to your second extension request. Requests for
an additional extension of time to file information returns are not
automatically granted. Requests for additional time are granted only
in cases of extreme hardship or catastrophic event. The IRS will send
a letter of explanation approving or denying requests for an additional
extension of time. (Refer to .11 of this Section.)

Sec. 2. Specifications for Filing Extensions
of Time Electronically

.01 The specifications in Sec.
3 include the required 200-byte record layout for extensions of time
to file requests submitted electronically. The instructions for the
information that is to be entered in the record are also included.
Filers are advised to read this section in its entirety to ensure
proper filing.

.02 If a filer does not have
a Transmitter Control Code (TCC), Form 4419, Application
for Filing Information Returns Electronically (FIRE), must
be submitted to obtain a TCC. This number must be used to submit extension
requests in an electronic file. (See Part A, Sec. 6.)

.03 If requesting an additional
extension of time, a Form 8809 must be faxed to IRB the same day as
the transmission. Be sure to include a signature and the reason an
additional extension is needed.

.04 Do not submit tax year 2012 extension requests filed electronically before January 4, 2013.

Sec. 3. Record Layout - Extension of
Time

.01 Positions 6 through 188
of the following record should contain information about the withholding
agent for whom the extension of time to file is being requested. Do
not enter transmitter information in these fields. Only one TCC may
be present in a file.

Record Layout for Extension of Time

Field Position

Field Title

Length

Description
and Remarks

1-5

Transmitter Control Code

5

Required. Enter the five-character alphanumeric Transmitter Control Code
(TCC) issued by IRS. Only one TCC per file is acceptable.

6-14

Withholding Agent TIN

9

Required. Enter the valid nine-digit EIN/SSN assigned to the withholding
agent. Do not enter blanks, hyphens or alpha characters. All zeros,
ones, twos, etc., will have the effect of an incorrect TIN. For foreign
entities that are not required to have a TIN, this field may be blank;
however, the Foreign Entity Indicator in position 187 must be set
to “X.”

15-54

Withholding Agent Name

40

Required. Enter the name of the withholding agent whose
TIN appears in positions 6-14. Left-justify the information and fill
unused positions with blanks.

55-94

Second Withholding Agent Name

40

Required. If additional space is needed, this field may
be used to continue name line information (for example, c/o First
National Bank); otherwise, enter blanks.

95-134

Withholding Agent Address

40

Required. Enter the withholding agent’s address. The street address
should include the number, street, apartment, or suite number (or
P.O. box if mail is not delivered to a street address)

135-174

Withholding Agent City

40

Required. Enter the withholding agent’s city, town, or post office.

175-176

Withholding Agent State

2

Required. Enter the withholding agent’s valid U.S. Postal Service state
abbreviation. (Refer to Part A, Sec. 14.)

177-185

Withholding Agent ZIP Code

9

Required. Enter the withholding agent’s ZIP Code. If using a five-digit
ZIP Code, left-justify the information and fill unused positions with
blanks.

186

Document Indicator (See Note below.)

1

Required. Enter “4.”

Note: Do not enter any other values in this field. Submit a separate record
for each document. For example, when requesting an extension for Form
1099-INT and Form 1042-S for the same withholding agent, submit one
record with “2” coded in this field and another record
with “4” coded in this field. When requesting an extension
for Form 1099-DIV and Form 1099-MISC for the same withholding agent,
submit one record with “2” coded in this field.

187

Foreign Entity Indicator

1

Enter “X” if the withholding
agent is a foreign entity.

188

Recipient Request Indicator (See Note below.)

1

Enter “X”
if the extension request is to furnish statements to the recipients
of the information returns.

Note: A separate
file is required for this type of extension request. A file must contain
either all blanks or all Xs in this field.

189-198

Blank

10

Enter blanks.

199-200

Blank

2

Enter blanks or carriage return/line
feed (CR/LF) characters.

Extension of Time Record
Layout

Transmitter Control Code

Withholding Agent TIN

Withholding Agent Name

Second Withholding Agent
Name

Withholding Agent Address

Withholding Agent City

1-5

6-14

15-54

55-94

95-134

135-174

Withholding Agent State

Withholding Agent Zip
Code

Document Indicator

Foreign Entity Indicator

Foreign Entity Indicator

Blank

175-176

177-185

186

187

188

189-198

Blank or CR/LF

199-200

Sec. 4. Extension of Time for Recipient
Copies of Information Returns

.01 Request an extension of
time to furnish the statements to recipients of Forms 1042-S by submitting
a letter to IRS at the address listed in Part D, Sec.1.08. The letter
should contain the following information:

Withholding agent name

TIN

Address

Type of return

Specify that the extension request is to provide statements
to recipients

Reason for the delay

Signature of withholding agent or duly authorized person

.02 Requests for an extension
of time to furnish statements to recipients of Forms 1042-S are not
automatically approved. If approved, an extension will allow a maximum
of 30 days from the due date. The request must be postmarked no later
than the date the statements are due to the recipients.

.03 Generally, only the withholding
agent may sign the letter requesting the extension for recipient copies.
If a transmitter has a contractual agreement with a withholding agent
to submit extension requests on the withholding agent’s behalf,
the transmitter should state so in the letter requesting the extension.

.04 Requests for extensions
of time to file recipient copies for more than ten withholding agents
are required to be submitted electronically. (See Sec. 3, for the
record layout.). When requesting extensions of time for recipient
copies, a signed letter must be faxed to IRB by the transmitter the
same day as the transmission. Be sure to include the reason an extension
for the recipient copies is needed.

.05 Transmitters submitting
an extension of time for recipient copies with an electronic file
should not submit a list of withholding agent names and TINs with
the letter since this information is included in the electronic file.

.06 The online fill-in Form
8809 extension option cannot be used to request an extension to furnish
statements to recipients.

.01 If a withholding agent
is required to file electronically but fails to do so and does not
have an approved waiver on record, the withholding agent will be subject
to a penalty of $100 per return in excess of 250. (For penalty information,
refer to the Penalty Section of the 2012 General Instructions
for Certain Information Returns.)

.02 If withholding agents
are required to file original or amended returns electronically, but
such filing would create an undue hardship, they may request a waiver
from these filing requirements by submitting Form 8508, Request for Waiver from Filing Information Returns Electronically, to IRS. Form 8508 can be obtained on the IRS website at www.IRS.gov
or by calling 1-800-829-3676.

.03 Although a withholding
agent may submit as many as 249 returns on paper, IRS encourages electronic
filing. Once the 250 threshold has been met, filers are required to
submit any returns in excess of 250 electronically. If a waiver for
original documents is approved, any corrections for the same type
of returns will be covered under that waiver.

.04 Generally, only the withholding
agent may sign Form 8508. A transmitter may sign if given power-of-attorney;
however, a letter signed by the withholding agent stating this fact
must be attached to Form 8508.

.05 A transmitter must submit
a separate Form 8508 for each withholding agent. Do not submit a list
of withholding agents.

.06 All information requested
on Form 8508 must be provided to IRS for the request to be processed.

.07 The waiver, if approved,
will provide exemption from the electronic filing requirement for
the current tax year only. Withholding agents may not apply for a
waiver for more than one tax year at a time.

.08 Form 8508 may be photocopied
or computer-generated as long as it contains all the information requested
on the original form.

.09 Filers are encouraged to
submit Form 8508 to IRS at least 45 days before the due date of the
returns. IRS does not process waiver requests until January. Waiver
requests received prior to January are processed on a first come,
first serve basis.

.10 All waiver requests must
be sent to the following address:

Internal Revenue Service

Information Returns Branch

Attn: Extension of Time
Coordinator

240 Murall Drive, Mail
Stop 4360

Kearneysville, WV 25430

.11 File Form 8508 for the
W-2 series of forms with IRS, not SSA.

.12 Waivers are evaluated on
a case-by-case basis and are approved or denied based on criteria
set forth in the regulations under section 6011(e) of the Internal
Revenue Code. The transmitter must allow a minimum of 30 days for
IRS to respond to a waiver request.

.13 If a waiver request is
approved, keep the approval letter on file. Do not send a copy of
the approved waiver to the service center where the paper returns
are filed.

.14 An approved waiver only
applies to the requirement for filing information returns electronically.
The withholding agent must still timely file information returns with
the appropriate service center on the official IRS paper forms or
an acceptable substitute form.